Is Crypto Accepted in South Korea? Inside Asia’s Most Active Digital Asset Market

Last Updated on 22 December 2025

South Korea is not one of those countries pushing ahead with crypto for the sake of it. Instead, the country is looking to reshape mainstream crypto adoption. Walk into any coffee shop near Seoul’s Gangnam district, and chat to people. You’ll see that plenty of them have invested in crypto in the past. Nearly 30% of the country’s population now owns digital assets, making this nation of 52 million one of the most crypto-engaged markets on the planet.

But acceptance here comes with a twist. You won’t find Bitcoin accepted at your local convenience store, yet the country’s exchanges handle billions in daily volume. That’s because South Korea has taken a unique path: embracing crypto trading with remarkable enthusiasm while wrapping it in some of the strictest regulations you’ll find anywhere.

Green Light with Speed Bumps for Crypto

South Korea has official legal status for cryptocurrency, with a well-developed, comprehensive legal framework established since the 2017 crypto boom. To protect consumers and ensure exchanges comply with high standards, the government enacted the Act on the Protection of Virtual Asset Users in July 2024.

To make purchases on Korean exchange platforms, you need to use bank accounts that have been real-name verified. And this is not merely an administrative procedure. It is an essential component of an anti-money laundering process taken very seriously by the relevant authorities. The Financial Services Commission extended its “travel rule” to cover all virtual asset transactions, regardless of their value (even if less than 1 million won – roughly $680), in November 2025, thereby closing a loophole used by individuals to evade reporting requirements by dividing each transfer into smaller parts.

Several governmental agencies, including the Financial Services Commission, the Financial Supervisory Service, and the Korea Financial Intelligence Unit, oversee financial regulation for cryptocurrency. All three entities are responsible for ensuring compliance with rules and laws governing exchanges, including security standards and the separation of customer assets from company assets.

The current trend clearly demonstrates the increasing seriousness with which authorities view the regulatory regime for cryptocurrency. Authorities plan to implement a transaction monitoring system in 2025 and require businesses that conduct cross-border virtual asset transactions to register with the applicable authority and submit monthly reports. Individuals convicted of serious crimes, such as drug offenses or tax evasion, will be prohibited from becoming majority shareholders of companies involved in cryptocurrency.

Who’s Buying Digital Assets?

In late 2025, South Korea reported that roughly 30% of its population had invested in digital currencies. The demographic most represented within this group is young adults. A 2024 survey found that 40% of college students were engaged in some form of cryptocurrency investment. Younger generations tend to view cryptocurrency as an avenue for building wealth in a highly competitive economic environment with fewer and fewer traditional avenues for success.

And investor numbers continue to grow. It’s estimated that the cryptocurrency market in South Korea will increase to 12.31 million users by 2026, which equates to approximately one-fourth of the country’s total population. This suggests that South Koreans are actively using their digital currency investments and generating substantial revenue from them.

On top of all this, new coins continue to populate the market. By 2025, new coins, including Bitcoin Hyper and Maxi Doge Token, had entered the thousands of other digital currency offerings in South Korea (source: https://www.coinspeaker.com/kr/guides/new-cryptocurrency/). These new coins attract interest from the large number of active traders seeking earning opportunities in this market. However, regulatory oversight limits the number of coins that can be traded on the largest digital currency exchanges.

The market isn’t limited to retail anymore. Before the third quarter of 2025, the Financial Services Commission issued a regulation permitting public companies, charitable organizations, and professional investors to participate in cryptocurrency markets. This development introduces institutional capital and credibility into a market driven primarily by individual investors.

Volume of Trades Comparable to Wall Street

Not only do South Korean exchanges play a role in the global cryptocurrency market, but they also help shape it. With 72% of the South Korean exchange market held by Upbit, followed closely by Bithumb. The first averaged 4.6 trillion won ($3.36 billion) per day, while the latter averaged 1.6 trillion won ($1.2 billion) per day. The trading volumes processed by these platforms represent a significant share of global trading.

Between July 2024 and June 2025, South Korea reported $722 billion in fiat-to-crypto transactions, second only to the U.S. However, the U.S. has a population nearly six times that of South Korea.

In recent years, the market experienced explosive growth. Between May 2024 and June 2025, on-chain value received in South Korea increased by 100%, thereby doubling the already large market. This increase in on-chain value reflects both retail enthusiasm and growing acceptance of digital assets as viable investment opportunities.

Trading here tends toward speculation. Cryptocurrency trades are conducted similarly to equities in South Korea—liquid, speculative, and mainstream. The cryptocurrency markets trade continuously with very high liquidity, and price movements in the Korean markets often signal future trends in the global markets.

The Kimchi Premium Phenomenon

One of the most interesting quirks of the Korean market is the “Kimchi Premium,” which is the price gap between Korean exchanges and global platforms. Historically, Bitcoin traded higher in Seoul than anywhere else, sometimes by double-digit percentages.

This premium emerged from a mix of high local demand and capital controls that make arbitrage difficult. In February 2025, the Kimchi Premium surged to over 10%, though it has since normalized. By late November 2025, the premium hovered around 1-2%, well within historical norms and sometimes flipping to a slight discount.

The narrowing premium tells an important story. The Kimchi Premium has given way to a more rational, globally integrated ecosystem as Korea’s market matures. Stricter regulations, reduced speculative trading, and better connections to international markets have all played a role.

Real-World Use is Limited but Growing

In contrast with mainstream cryptocurrency use worldwide, South Korea has very low adoption of cryptocurrency for everyday purchases of goods and services. This stands out when compared to other countries around the world, such as El Salvador or Brazil, where many merchants accept Bitcoin for payment.

The primary reason for the limited use of cryptocurrency for everyday purchases is the regulatory environment surrounding cryptocurrency in South Korea. The rules surrounding cryptocurrency in the country primarily aim to limit individuals’ ability to launder money and to protect individual investors. These rules create barriers to businesses offering direct crypto acceptance for everyday purchases.

The banks in South Korea also remain cautious about all cryptocurrency-related financial transactions. In addition, the real-name rule limits the use of cryptocurrency at the point of sale. That said, there are ongoing infrastructure developments. Companies, including Samsung and LG, have invested in blockchain technology and are exploring how distributed ledger technology may improve their business processes. While these investments do not facilitate the use of cryptocurrency as a form of payment, they do demonstrate that the business community in South Korea views the technology as worthy of serious consideration.

Taxes: Delayed but Coming

One question on every trader’s mind is taxation. Currently, there’s no tax on crypto profits in South Korea, but that seems to be temporary. The government initially planned to implement a 20% tax on gains exceeding 2.5 million won in 2023, then pushed it to 2025, and has now delayed implementation until 2027 or potentially 2028.

This two-year postponement helps traders and businesses prepare, giving the market breathing room while authorities figure out the best approach. The delay aligns with political promises made during elections and reflects how seriously the government takes crypto’s role in the economy.