Crypto regulation in South Korea
A huge retail market run through a handful of licensed won exchanges, with a tax that keeps being delayed.
Crypto is legal in South Korea, but trading in won happens only through a few exchanges that are registered with the Financial Intelligence Unit and give each customer a real-name bank account. A user-protection law has applied since July 19, 2024. A 22% tax on crypto gains is scheduled for January 1, 2027 after three delays, and a broader Digital Asset Basic Act covering exchanges and stablecoins was still being drafted in late 2026.
Last reviewed: November 2026. Facts on this page were checked against official sources on November 4, 2026.
South Korea at a glance
| Owning crypto | Legal. |
|---|---|
| Buying and selling | Through FIU-registered exchanges; won trading requires a real-name bank account. |
| Paying with crypto | Legal, not legal tender; rarely used. |
| Exchange licensing | FIU registration under the Specific Financial Information Act; Digital Asset Basic Act pending. |
| Mining | Legal; little activity because power is expensive. |
| Tax | No tax on individuals' crypto gains yet. A 22% tax on yearly gains above ₩2.5 million is scheduled for January 1, 2027. |
| Stablecoins | No framework yet; won stablecoins depend on the pending Digital Asset Basic Act. |
| Restrictions and bans | Initial coin offerings banned since 2017; corporate access to exchanges being phased in. |
Owning crypto
Individuals can own crypto. South Korea has one of the world's most active retail crypto markets.
Buying and selling
To trade crypto for won, you need an account at an exchange that has a real-name verified account partnership with a Korean bank. Only a few exchanges, including Upbit and Bithumb, offer won trading. Since 2021, exchanges must register with the Korea Financial Intelligence Unit and meet security certification.
Paying with crypto
Crypto is not legal tender and isn't commonly used for payments.
Exchange licensing
The Virtual Asset User Protection Act, in force since July 19, 2024, requires exchanges to keep customers' won deposits with banks, store most customer crypto in cold wallets, carry insurance or reserves, and monitor for market manipulation, which is now a crime. The government has been preparing a Digital Asset Basic Act to add licensing for exchanges and rules for stablecoins; on October 22, 2026 the financial regulator's chairman said discussions were nearing completion.
Mining
Mining is legal, but high electricity prices mean little mining happens in Korea.
Tax
Individuals currently pay no tax on crypto trading gains. A tax of 22% (20% national plus local tax) on annual gains above ₩2.5 million was originally due in 2022 and has been postponed three times; it is now scheduled for January 1, 2027. In late 2026 petitions sought repeal or another delay, and the ruling party's leader called for a final review, so the start date is uncertain.
Stablecoins
There is no stablecoin law yet. Whether banks or tech companies may issue won-backed stablecoins, and how the Bank of Korea would oversee them, is a central question in the draft Digital Asset Basic Act.
Restrictions and bans
- Raising money through initial coin offerings has been banned since September 2017.
- Corporate and institutional trading on exchanges was long restricted; regulators began allowing it in phases in 2025.
- Manipulating crypto prices is a crime under the 2024 law.
What changed recently
Regulators ban initial coin offerings.
Exchanges must register with the Financial Intelligence Unit.
The Virtual Asset User Protection Act takes effect.
Regulators begin letting some companies open exchange accounts.
Regulator says the Digital Asset Basic Act draft is nearly complete.
- The crypto gains tax is scheduled for January 1, 2027, but repeal and delay proposals were under debate in November 2026.
- The government's version of the Digital Asset Basic Act had not been introduced when we checked (lawmakers' bills under that name have been filed since 2025).
This page summarizes the rules for general understanding. Laws change, and how they apply depends on your circumstances. For a decision that matters, check the official sources below or ask a qualified local adviser.
Frequently asked questions
Is crypto legal in South Korea?
Yes, through registered exchanges with real-name bank accounts.
Does South Korea tax crypto?
Not yet for individuals' trading gains. A 22% tax on yearly gains over ₩2.5 million is scheduled for January 1, 2027, after three delays.
Are ICOs allowed in South Korea?
No. Regulators banned initial coin offerings in 2017.
Where to next
Sources
- Korea Financial Intelligence Unit (KoFIU)
- Financial Services Commission (Korea)
- South Korea's crypto bill nears completion while tax debate intensifies (The Block, October 2026)
Written for beginners and checked against the sources listed. Last reviewed November 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.