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HYPE $28.32 (-3.69%)
XMR $330.26 (-3.61%)
CC $0.16 (-4.58%)
LINK $8.45 (-4.18%)
XLM $0.16 (-5.59%)
RAIN $0.01 (-3.26%)
ZEC $259.63 (-8.87%)
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LTC $51.74 (-5.60%)
AVAX $8.83 (-3.21%)

South Korea vs Malaysia

Crypto regulation comparison

← Back to map | South Korea | Malaysia
South Korea

South Korea

Malaysia

Malaysia

Legal
Legal

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.

Cryptocurrency is legal and regulated in Malaysia. The Securities Commission oversees digital asset exchanges (DAX) and initial exchange offerings under the Capital Markets and Services (Prescription of Securities) Order 2019. Only SC-approved exchanges can operate. Malaysia does not impose capital gains tax on crypto for individuals, though frequent trading may be classified as business income.

Tax Type Varies
Tax Type None
Tax Rate 20%
Tax Rate 0%
Exchanges Yes Yes
Exchanges Yes Yes
Mining Yes Yes
Mining Yes Yes
Regulator FSC (Financial Services Commission), FSS, FIU (Korea Financial Intelligence Unit)
Regulator SC (Securities Commission Malaysia), BNM (Bank Negara Malaysia)
Stablecoin Rules Under development; stablecoins subject to VASP rules
Stablecoin Rules Digital assets on approved exchanges only; stablecoins not separately regulated
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
  • Digital asset exchanges must be registered and approved by the Securities Commission
  • Only approved tokens can be listed on registered exchanges (e.g., BTC, ETH, XRP on approved list)
  • No capital gains tax for individuals; frequent trading may be treated as business income
  • BNM regulates crypto for AML/CFT purposes under the Anti-Money Laundering Act
  • IEOs must be conducted through SC-approved platforms
Sources
Sources