South Korea's crypto expansion stalled in 2025 as regulatory approvals for Virtual Asset Service Providers (VASPs) sharply declined. Only two new VASPs were approved—Happy Block for exchange services and Blosafe for transfer and custody—with average approval times lengthening from 11 to 16 months. Regulators intensified inspections and penalties, fining major firms like Dunamu (Upbit’s parent) for anti-money laundering lapses. The delayed Digital Asset Basic Act, postponed to 2026, has created legal uncertainty, while stricter compliance rules increased operational costs. This slowdown has discouraged new market entrants, limited user options, and prompted some businesses to consider overseas expansion due to heavy red tape.

# Пов'язані статті щодо Approvals

Crypto Expansion Stalls In South Korea After VASP Approvals Take A Hit