From Cointelegraph

April 18, 2025 11:20 AM:

South Korea began 2025 with political turmoil, regulatory scrutiny, and a maturing crypto market. The nation ended 2024 in chaos due to President Yoon Suk Yeol’s failed martial law attempt in December. Financial watchdogs investigated exchanges, lifting the ban on corporate trading accounts while crypto adoption surged and trading volume cooled.

A planned 20% crypto capital gains tax was postponed until 2027, the third delay, to prevent investor flight and address economic and political instability. Lawmakers cited challenges in tracking wallet profits, shifting priorities after Yoon’s impeachment, and concerns of offshore exchange activity.

The US, Japan, and South Korea issued a joint warning against North Korean hackers targeting crypto firms. Lazarus Group was named in major hacks, with $1.34 billion of stolen crypto linked to North Korea. Authorities urged vigilance against malware and fake IT freelancers.

South Korea’s Virtual Asset Committee met to discuss corporate access to crypto trading accounts. The Financial Services Commission announced investor protections against price manipulation and stricter stablecoin oversight, postponing a decision on corporate trading access for further review.

In the first enforcement of the Virtual Asset User Protection Act, a trader was indicted for market manipulation. Upbit faced suspension for alleged KYC violations, prompting regulators to consider a ban on new user registrations. Upbit and Bithumb planned compensation following service disruptions during martial law.

The Financial Services Commission unveiled a plan to allow corporate entities to open crypto trading accounts by late 2025. Charities and universities will be the first to sell crypto donations, requiring compliance with KYC and AML regulations. The move aims to enhance institutional participation under stricter compliance standards.

Police rearrested a serial fraudster for a $48 million crypto scam involving the token Artube. The suspect, identified as Park, allegedly used false advertising, pump-and-dump tactics, and wash trading. This was Park’s second arrest after a previous token fraud case involving $10 million.

Dunamu, the operator of Upbit, faced regulatory action for KYC compliance failures and dealings with unregistered foreign exchanges. The Financial Intelligence Unit issued a partial business suspension, blocking new customer deposits and withdrawals for three months. Dunamu filed a lawsuit challenging the sanctions.

South Korea started reviewing legal pathways to allow Bitcoin spot ETFs, considering Japan’s regulatory approach. The FSC’s shift follows lobbying efforts from domestic brokerages amid rising demand. The agency started cracking down on illegal foreign exchanges, blocking access and warning of criminal penalties.

Google Play removed 17 unlicensed crypto exchange apps in South Korea. The FIU worked with Apple to block unauthorized platforms as part of the crackdown. A court temporarily lifted Upbit’s business suspension, allowing the exchange to serve new users while the case is under review.

Read more at Cointelegraph: South Korean crypto emerges from failed coup into crackdown season