1. Strict Regulations & Investor Protection "Virtual Asset User Protection Act" (Effective July 2024) Mandatory exchange reserves: Exchanges must hold 80% of user deposits in cold wallets. Insurance requirements: Platforms must secure insurance for hacking incidents (minimum 5% of assets). Penalties for fraud: Up to life imprisonment for market manipulation or Ponzi schemes. Ban on Privacy Coins (2025 Enforcement) Monero (XMR), Zcash (ZEC), and other privacy-focused coins delisted from all Korean exchanges. Transaction monitoring: All crypto trades must comply with FATF Travel Rule (full KYC). #SouthKoreaCryptoPolicy