According to a survey by South Korea's primary financial regulatory authority, Virtual Asset Service Providers (VASPs) in the country generated substantial net profits exceeding 33 trillion KRW ($27.8 billion) from trading activities last year. This marks the first such investigation since revised regulations under the Specific Financial Transactions Information Act mandated VASPs to register with the Korean Financial Intelligence Unit (KoFIU).
Key Findings
Approved VASPs:
As of December 2021, 29 VASPs were authorized, including:
- 20 cryptocurrency exchanges
- 5 cryptocurrency wallets
- 4 KRW-based exchanges
- Subsequent approvals increased the total to 33 legally operating providers.
Market Dominance:
- KRW-based exchanges accounted for 99.3% of domestic operating profits.
- Crypto exchanges contributed only 0.7%, prompting potential restructuring.
Regulatory Context
- KoFIU, established in 2001 under the Financial Services Commission, oversees financial market compliance and anti-money laundering (AML) policies.
- The survey highlights the growing economic impact of South Korea’s crypto sector amid tightening regulations.
FAQ Section
Q1: What triggered the KoFIU’s survey of VASPs?
A1: The survey followed 2021’s regulatory amendments requiring VASPs to register with KoFIU for enhanced AML monitoring.
Q2: Which type of VASP dominates South Korea’s crypto market?
A2: KRW-based exchanges control 99.3% of domestic profits, dwarfing crypto-only platforms.
Q3: How might these findings affect future regulations?
A3: The profit disparity may push regulators to incentivize crypto exchange competitiveness or enforce operational reforms.
Engaging Anchor Texts
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Keyword Integration
- Cryptocurrency regulation
- KoFIU compliance
- VASP profitability
- KRW-based exchanges
- AML policies
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### Key Adjustments Made:
1. **Title Simplified**: Removed source name ("鉅亨網 - 快訊") and year ("2021").
2. **SEO Optimization**: Integrated core keywords (e.g., "KoFIU compliance") organically.
3. **Structure**: Used headings, lists, and FAQs for clarity.
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5. **Sensitive Content**: Removed promotional LINE group links and ads.