Well now, South Korea moseyed into the year 2025 like a cat into a room full of rocking chairs—political hullabaloo, regulators with pitchforks, and a crypto market finally told to behave itself, or at least sit still long enough to grow up.
They wrapped up 2024 in a fine mess after then-President Yoon Suk Yeol’s bungled attempt at martial law in December — a stunt so clumsy that it made a three-legged dog look like a good runner.
After the dust settled, the local financial sheriffs started drawing lines on the ground, poking crypto exchanges with long sticks and waving farewell to their ban on corporate trading accounts. Surprisingly, folks kept piling into crypto like flies on molasses, even as the buzzing volume slowed.
Here’s the lowdown on the greatest hits (and low blows) that charted South Korea’s crypto saga through Q1 of 2025.
Crypto Traders Get Another Two-Year Get-Out-of-Tax-Free Card 🎩
Jan. 1 — The Tax That Didn’t Jump the Gun
The dreaded 20% capital gains tax on crypto decided to keep hitting the snooze button instead of waking up on Jan. 1. Legislators pushed it back AGAIN to 2027, marking the third “maybe next time” for this tax—making the delay streak almost as long as a Mississippi riverboat ride.
The reason? Well, politicians worried investors might high-tail it overseas, wallets are trickier to watch than a cat in a bathtub, and national drama from Yoon’s failed stunt made everyone too busy scratching their heads.
Jan. 14 — Beware of North Korean Crypto Bandits 👹
The US, Japan, and South Korea put on their serious faces, warning crypto folks to watch for sneaky malware and phony IT freelancers. The Lazarus Group—sounds like a villain from a dime novel—was fingered as the brains behind some of last year’s biggest crypto heists, including a cool $230 million pinch in India and a $50 million swipe right at South Korea’s Upbit exchange.
Jan. 15 — Waiting for the Green Light (Spoiler: It Blinked Yellow)
The country’s Virtual Asset Committee, a mouthful if there ever was one, held a second powwow. Everyone hoped they’d finally let companies play in the crypto sandbox, but nope — more reviews needed. Instead, they promised to crack down on price trickery and tighten rules on stablecoins, because nothing says fun like more paperwork.
Jan. 16 — The First Crypto Law Gets Some Teeth
A poor soul caught in a pump-and-dump scam got indicted under South Korea’s spanking new crypto user protection law — like catching a fox in the henhouse. Meanwhile, Upbit got a slap on the wrist for KYC slip-ups in over half a million cases and might have to close its doors to new customers for a spell.
Jan. 23 — Martial Law Mayhem Means Crypto Companies Say “Sorry” and Pay Up
When martial law came crashing down like a bull in a china shop on Dec. 3, 2024, trading platforms went into meltdown. Upbit and Bithumb promised to make it up to customers, like apologizing for throwing a wild party and knocking over all the furniture.
Finally, The Gates Open to Corporate Crypto — But Just a Tad
Feb. 13 — Charities and Universities Get Front-Row Seats
The Financial Services Commission finally rolled out the red carpet for corporate crypto accounts, but in a slow dance, starting with charities and universities. These lucky ducks can begin selling their crypto donations soon, as long as they don’t forget their real names and pass the usual KYC and AML hoopla.
South Korea’s real-name system started way back in 1993 to catch the tax dodgers and money launderers, but crypto threw a wrench in the works with secretive types and wild anonymous accounts trading like friendly ghosts. Only five exchanges have managed to make peace with the real-name system so far.
This new roadmap aims to let the big institutional fish swim in the local crypto pond — as long as they play by the rules.
Feb. 21 — Serial Fraudster Gets Caught… Again! 🕵️♂️
“Jon Bur Kim” (or Park, if you want to call him by his proper name) wasn’t content with one or two scams. Police nabbed him again, this time for a $48 million crypto hustle involving the Artube token. His tricks included false ads, pump-and-dumps, and wash trading—basically the three-ring circus of crypto cons.
Feb. 25 — Upbit Operator Gets the Business From Regulators
South Korea’s Financial Intelligence Unit slapped Dunamu, the folks behind Upbit, with sanctions over KYC mess-ups and shady dealings with unregistered foreign exchanges. That meant a three-month timeout from handling new customer deposits and withdrawals — like being sent to the corner for misbehaving.
Feb. 27 — Meet the Crypto Crime Busters
After a successful trial run, prosecutors made the Virtual Asset Crime Joint Investigation Division official. This 30-strong posse, including sharp-eyed prosecutors and regulators, has already bagged 74 suspects and frozen almost $490 million in ill-gotten gains.
Feb. 28 — Dunamu Fights Back
Not one to take it lying down, Dunamu filed suit against the FIU’s sanctions, kicking off a legal showdown that will keep the popcorn coming.
Bitcoin ETF: From “No Way” to “Maybe Someday”
March 5 — The Great Bitcoin ETF Debate
The powers that be started poking around the idea of allowing Bitcoin spot ETFs, inspired by how Japan’s been loosening its grip. This is a big change, given Korea’s past “absolutely no” stance. Though it’s early days, the winds may be shifting, possibly bringing in more legitimacy — or at least more paperwork.
March 21 — Crackdown on Illegal Exchanges Gets Serious
The FIU compiled a blacklist of rogue foreign exchanges, blocking their access via app stores and ISPs, and warned they mean business — with jail time on the table for illegal operations.
March 26 — Google Joins the Party, Axes 17 Rogue Apps
At the regulators’ bidding, Google Play purged 17 unlicensed crypto exchange apps, including KuCoin and MEXC. Apple promised to follow suit, so soon the only thing illegal exchanges might have left to trade is snake oil.
March 27 — Upbit Gets a Temporary Reprieve
A court gave Upbit a break, lifting its partial suspension so it could welcome new users again while the legal dust settles. The crypto rodeo ain’t over yet.
From Crackdown to Campaign Trail: South Korea’s Crypto Saga Rolls On
By March’s end, over 16 million South Koreans — about a third of the population — were riding the crypto waves, outnumbering domestic stock market players. Yet, trading volume took a nosedive, with Upbit seeing a 34% drop in business. Goes to show, even mania can get tired.
By mid-April, regulators were still tightening the screws. Apple followed Google’s lead in booting offshore apps, and prosecutors kept filing fresh market manipulation charges like there was no tomorrow.
This wild ride is unfolding just before an early presidential election in June, triggered by Yoon’s impeachment. Of course, crypto has played its part in local politics — the 2022 election campaign was powered by it, and it looks like the blockchain will stay center stage for the candidates.
One such candidate, former prosecutor Hong Joon-pyo, promises to rewrite crypto rules “Trump style,” though he admitted he hasn’t got the foggiest what a central bank digital currency is. Now, if that ain’t political comedy, I don’t know what is.
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2025-04-18 18:41