South Korea’s Crypto Crackdown: A Comedy of Errors and Regulations! 😂

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In a land where the digital currency flows like the Han River, South Korea has decided to tighten the noose around the neck of crypto transactions. As if preparing for a grand theatrical performance, the nation is rolling out new guidelines for nonprofit crypto sales and stricter listing standards for exchanges, all while institutional players eagerly await their entrance onto the stage.

On the fateful day of May 20, the Financial Services Commission (FSC) convened its fourth Virtual Asset Committee meeting, where it unveiled a sweeping array of measures that could make even the most seasoned bureaucrat blush. These rules, set to take effect in June, will allow nonprofit organizations and virtual asset exchanges to sell cryptocurrencies, but only under the watchful eye of new compliance standards. Because who doesn’t love a good set of rules?

Nonprofit entities, those noble guardians of virtue, must now possess at least five years of audited financial history to be deemed worthy of receiving and selling virtual asset donations. They will also need to establish internal Donation Review Committees—because nothing says “trustworthy” like a committee to assess the appropriateness of donations. Who knew charity could be so bureaucratic?

To combat the ever-looming specter of money laundering, all donations must be funneled through verified Korean won exchange accounts. The verification responsibilities will be shared among banks, exchanges, and the nonprofits themselves. It’s a delightful game of “pass the buck” that ensures everyone is involved in the fun!

Moreover, only cryptocurrencies that have been blessed by at least three major domestic exchanges will be eligible for this grand scheme, and liquidation is expected to occur immediately upon receipt. Because waiting is so last season.

Exchange sales to be restricted

Crypto exchanges, those bustling marketplaces of digital dreams, will be allowed to liquidate user fees paid in crypto, but only to cover operational costs. Sales will be capped at daily limits, typically no more than 10% of the total planned amount. Because who needs liquidity when you can have limits?

Furthermore, sales will only be permitted for the top 20 tokens by market cap across five won-based exchanges. And in a move that would make any conflict of interest blush, exchanges are barred from selling tokens on their own platforms. It’s like a soap opera, but with more regulations!

South Korea is also tightening the screws on listing digital assets. The revised rules aim to curb instability from sudden price spikes by requiring a minimum circulating supply before a token is allowed to trade. Market orders will be temporarily restricted post-listing, because nothing says “welcome” like a good old-fashioned restriction.

So-called zombie tokens, those poor souls with low volume and thin market caps, along with memecoins lacking clear utility, will face increased scrutiny. Exchanges must delist tokens that fail to meet liquidity benchmarks or community engagement thresholds. It’s survival of the fittest in the crypto jungle!

Starting in June, exchanges and nonprofits can apply for real-name accounts to facilitate these sales. Later this year, the FSC plans to extend real-name accounts to listed firms and professional investors. Because anonymity is so overrated!

CryptoMoon, in its quest for truth, reached out to South Korea’s Digital Asset eXchange Association for comment, but alas, silence reigned supreme by the time of publication.

South Korean candidates push pro-crypto agenda

In a twist worthy of a political drama, South Korea’s Democratic Party leader, Lee Jae-myung, has proposed launching a stablecoin pegged to the Korean won. His aim? To curb capital flight and bolster the country’s financial autonomy. Because who wouldn’t want a stablecoin in their pocket?

At a recent policy forum, Lee proclaimed that a won-based stablecoin could help retain domestic wealth and reduce dependence on foreign-backed digital currencies like USDt and USDC. It’s a noble cause, indeed!

His rival, Kim Moon-soo of the ruling People Power Party, has also jumped on the bandwagon, expressing support for introducing spot crypto ETFs. It seems there’s bipartisan momentum on this issue, proving that even in politics, everyone loves a good crypto party!

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2025-05-21 11:49