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Iceland vs South Korea

Crypto regulation comparison

← Back to map | Iceland | South Korea
Iceland

Iceland

South Korea

South Korea

Legal
Legal

Cryptocurrency is legal in Iceland and subject to a 22% capital gains tax. Iceland is a major crypto mining destination due to abundant geothermal and hydroelectric energy. As an EEA member, Iceland follows EU financial regulations including MiCA through EEA incorporation.

South Korea is one of the world's largest crypto markets. The Virtual Asset Users Protection Act (VAUPA), effective July 2024, provides comprehensive investor protection including requirements for exchanges to hold user assets in cold storage and carry insurance. All VASPs must register with FIU and comply with strict AML rules under the Specific Financial Information Act. A 20% crypto gains tax (above KRW 2.5 million exemption, raised from the original 250K KRW threshold) has been deferred multiple times and is now scheduled for January 2027.

Tax Type Capital gains
Tax Type Varies
Tax Rate 22%
Tax Rate 20%
Exchanges Yes Yes
Exchanges Yes Yes
Mining Yes Yes
Mining Yes Yes
Regulator FME (Fjármálaeftirlitið / Financial Supervisory Authority), Central Bank of Iceland
Regulator FSC (Financial Services Commission), FSS, FIU (Korea Financial Intelligence Unit)
Stablecoin Rules No specific stablecoin regulation; follows EEA guidelines
Stablecoin Rules Under development; stablecoins subject to VASP rules
Key Points
  • 22% capital gains tax on crypto profits
  • Iceland is one of the world's largest crypto mining locations due to cheap renewable energy
  • FME supervises crypto businesses under AML/KYC regulations
  • As an EEA member, Iceland incorporates EU financial regulations including MiCA
  • Capital controls (imposed 2008-2017) originally complicated crypto usage but have been lifted
Key Points
  • Virtual Asset Users Protection Act (VAUPA) effective July 2024 — major investor protection law
  • VASPs must register with FIU and partner with real-name verified bank accounts
  • 20% national tax (22% effective incl. 2% local income surtax) above KRW 2.5M annual exemption (deferred to January 2027)
  • Exchanges must hold 80%+ of user assets in cold wallets and carry insurance/reserves
  • Only won-denominated trading pairs allowed on major exchanges (Upbit, Bithumb, Coinone, Korbit)
Sources
Sources