South Korea

South Korea's approach to cryptocurrency is characterized by a high level of regulatory oversight. The primary regulatory bodies responsible for this oversight are the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS). The country has established a regulatory framework aimed at ensuring the stability of financial markets, protecting investors, and preventing illegal activities.I

n South Korea, cryptocurrencies are recognized as digital assets, but not as legal tender. This distinction significantly influences the regulatory requirements and taxation of crypto transactions.

Businesses involved in cryptocurrency, including those that accept crypto payments, must comply with the regulations set by the FSC and FSS. Compliance includes registration and adherence to specific operational guidelines.

These businesses are also required to provide clear information about the risks associated with cryptocurrency transactions. Ensuring transparency and protecting consumer rights are key aspects of the regulatory framework.Furthermore, businesses must maintain detailed records of their cryptocurrency transactions and comply with periodic reporting requirements. These records should include information about the parties involved, transaction amounts, and the dates of the transactions.