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North Korea vs South Korea

Crypto regulation comparison

← Back to map | North Korea | South Korea
North Korea

North Korea

South Korea

South Korea

Banned
Legal

North Korea does not allow civilian cryptocurrency use. The regime has been accused by the UN and US of using state-sponsored hacking to steal cryptocurrency to fund weapons programs.

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 None
Tax Type Varies
Tax Rate N/A
Tax Rate 20%
Exchanges No No
Exchanges Yes Yes
Mining No No
Mining Yes Yes
Regulator Central Bank of North Korea
Regulator FSC (Financial Services Commission), FSS, FIU (Korea Financial Intelligence Unit)
Stablecoin Rules Not applicable — crypto banned
Stablecoin Rules Under development; stablecoins subject to VASP rules
Key Points
  • No civilian cryptocurrency use permitted
  • State-sponsored crypto theft alleged by UN and US
  • Lazarus Group linked to major crypto exchange hacks
  • International sanctions restrict all financial activities
  • Cryptocurrency used by state actors, not civilians
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