South Korea vs Laos
Crypto regulation comparison
South Korea
Laos
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.
Laos authorized cryptocurrency mining and trading through a 2021 pilot program (PM Notification No. 1158). Six companies were initially licensed, growing to 15+ by 2023. Mining operations must be 100% Lao-owned and use at least 10MW from Électricité du Laos. Two crypto exchanges (LDX, Bitqik) registered with Bank of Lao PDR.
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)
Key Points
- PM Notification No. 1158 (2021) authorized pilot crypto mining and trading
- Two licensed exchanges: LDX and Bitqik, registered with Bank of Lao PDR
- Mining leverages surplus hydroelectric power from Électricité du Laos
- Mining must be 100% Lao-owned; trading platforms require 51% Lao ownership
- 15% tax on transaction fees; M security deposit required for exchanges