tl;dr
South Korea is lifting an eight-year ban to allow corporations, including non-profits and exchanges, to sell digital assets under strict compliance rules. Exchanges must register as virtual asset operators, sell only top tokens to cover operating expenses, and avoid conflicts of interest. Non-profit...
South Korea is lifting an eight-year ban, allowing corporations and non-governmental organizations (NGOs) to sell digital assets under strict compliance and anti-money laundering rules. Local exchanges must register as virtual asset operators, and are permitted to sell only top tokens to cover operating expenses while avoiding conflicts of interest. Non-profits can now sell donated digital assets, broadening funding sources for over 14,000 NGOs. To comply, corporations must undergo external audits and limit sales to tokens listed on multiple exchanges, with immediate cash-out requirements.
Enhanced anti-money laundering measures mandate thorough verification of transaction purposes and sources of funds, limiting donations and transfers to domestic won exchange accounts with overlapping customer verification by banks, exchanges, and corporations. Additionally, exchanges face restrictions on listing low-volume “zombie coins” and memecoins, allowing them only when minimum transaction and trading criteria on reputable offshore platforms are met.
This policy shift arrives just before South Korea’s presidential election, where leading candidates promise improved crypto regulations, digital asset exchange-traded funds (ETFs), and won-pegged stablecoins — all aiming to win support from an estimated 15 million digital asset traders.
In Russia, recently proposed legislation would enable government seizure of digital assets involved in crimes, classifying such assets as confiscatable property. The bill recognizes the unique challenges posed by privacy features in some cryptocurrencies and seeks blockchain expert guidance to ensure the safety and effective confiscation of digital currency, as well as settlement of victims’ claims. Although criminals’ use of digital assets is noted, data shows only 0.14% of digital asset transactions were crime-related in 2024.
Separately, Russian authorities aim to impose fines on individuals and entities making domestic payments with digital currencies, with penalties reaching up to 200,000 rubles ($2,500) for individuals and 1 million rubles ($12,500) for legal entities. This reflects Russia’s focus on regulating digital currency usage amid increasing international trade payments involving digital assets, especially with partners in China and India.
These developments in South Korea and Russia exemplify growing government efforts worldwide to regulate digital assets, balancing innovation and market growth against compliance, security, and crime prevention. How these evolving policies will shape the future cryptocurrency landscape remains a critical topic for investors and regulators alike.