Cryptocurrency in South Korea: regulation, taxes and licensing
In short. Crypto is legal in South Korea but hedged about more tightly than almost anywhere: you can only trade through an account opened in your real name at a bank partnered with the exchange. There is no tax on gains yet — it was legislated and postponed four times — but from 1 January 2027 it finally takes effect at 22%.
- TAX
- 22%from 1 January 2027
- EXEMPT THRESHOLD
- ₩2.5mof gains per year
- ACCOUNT
- Real-name onlyat a partnered bank
- COMPANIES
- Permittedsince Jan 2026, up to 5% of equity
- USER PROTECTION ACT
- Since July 2024manipulation is an offence
- WON STABLECOINS
- In progressframework promised for 2026
Who regulates crypto in South Korea
There is one regulator, the Financial Services Commission, and its approach is recognisable: the market is not banned, it is forced into daylight.
The spine of the system is the real-name account. You may only trade through a bank account in your own name, at a bank that has an agreement with the exchange. Anonymous trading has been impossible since 2018, and that requirement is what closed most of the smaller venues at the time.
Since July 2024 the Virtual Asset User Protection Act has applied. It requires exchanges to segregate client funds from their own, keep a substantial share in cold storage and insure the risk, and it explicitly prohibits market manipulation and insider trading.
A second phase is being prepared — a framework act on digital assets. The commission is merging several bills into one and aims to pass it before the end of 2026, with stablecoins the central question. The central bank has pressed for won-pegged stablecoins to be issued first by consortia in which banks hold the majority.
January 2026 brought a change worth noting separately. Before it, corporate entities effectively could not hold crypto at all — a prohibition that had stood for nine years. Listed companies and professional investors may now allocate up to 5% of shareholder equity a year to digital assets, opening access to roughly three and a half thousand organisations.
Tax: four postponements and a date that looks final
The story of Korean crypto tax is a story of delays. It was passed, then deferred, then deferred again — four times over, as the market pushed back and politicians obliged ahead of elections.
The tax reform package finalised on 3 August 2026 contains no deferral, the first complete package since 2020 without one. So from 1 January 2027 crypto gains become taxable at 22% including the local surcharge, with the first ₩2.5m of annual gains exempt.
That threshold sits noticeably below the equivalent for equities, which is one reason the fairness argument has not gone quiet. But unless the law changes yet again, January 2027 is the date to plan around.
Allowed
- Trade on exchanges registered with the regulator
- Hold and transfer crypto assets
- Companies may allocate up to 5% of equity a year to digital assets
- Take gains untaxed through the end of 2026
Restricted
- Real-name accounts only — anonymous trading does not exist here
- Market manipulation and insider trading are offences
- From 2027, gains above ₩2.5m are taxed at 22%
- Won stablecoins are still outside any framework
How the rules took shape
Real-name bank accounts become mandatory. Anonymous trading disappears and smaller venues close.
Exchanges must register with the regulator. Few complete the process.
The Virtual Asset User Protection Act takes effect: segregation, cold storage, a ban on manipulation.
A nine-year prohibition on corporate holdings is lifted, with a 5%-of-equity annual cap.
The tax reform package arrives without another postponement — the first since 2020.
Tax begins at 22% on annual gains above ₩2.5m.
Worth knowing
In May 2022 Terra/Luna, built by Korean founder Do Kwon, collapsed in three days, wiping out some $40 billion; about 200,000 Koreans lost money. Kwon was sentenced to 15 years in the United States.
Common questions
Is crypto taxed in South Korea?
Not yet. The tax was passed and postponed four times, but the 3 August 2026 reform package contains no deferral: from 1 January 2027 the rate is 22% on annual gains above ₩2.5m.
Why do I need a real-name account?
The requirement dates from 2018 and ends anonymous trading: the account must be in your own name at a bank with an agreement with the exchange.
Can companies hold crypto?
Yes, since January 2026. Before that a de facto prohibition had stood for nine years. Listed firms and professional investors may allocate up to 5% of equity a year.
What did the User Protection Act change?
Since July 2024 exchanges must segregate client funds, keep much of them in cold storage and insure the risk, and market manipulation is explicitly prohibited.
When will won stablecoins arrive?
The framework is promised before the end of 2026. The central bank wants issuance to start with bank-majority consortia.
Sources
Related reading
Other countries
Updated 19.08.2026 · this is reference material, not investment or tax advice