South Korea’s push to grow crypto services hit a hard pause last year, as regulators moved slowly and approvals dried up. Trading and custody firms found themselves waiting longer. Investors and startups are watching closely.
South Korea: Approvals Drop Sharply Inspections And Penalties IncreaseJoint ventures and bank-linked projects are not immune. Bit Korea, a planned tie-up with Hana Bank, is still waiting for clearance and cannot begin operations until it gets the green light. That blockage keeps several services off the market and delays plans that would have broadened options for ordinary users.
Lawmakers have debated a wider Digital Asset Basic Act meant to set clearer rules for stablecoins, custody and market conduct. That law is now delayed until 2026, which leaves many questions unresolved. At the same time, travel rule requirements and tighter identity checks have been expanded to close loopholes on small transfers. The result: paperwork is heavier and compliance costs are higher for firms seeking approval.
Industry groups argue that stricter oversight will reduce crime and protect consumers. Regulators say they want safer markets. Both views matter. With only two approvals in 2025 and key legislation postponed to 2026, the market’s next moves will depend on how quickly rules are clarified and how firms adapt to heavier compliance demands.
Featured image from Unsplash, chart from TradingView
