South Korea will impose a $220,000 supervisory fee on domestic crypto exchanges starting next year. This fee, part of the “Virtual Asset User Protection Act” introduced on July 19, applies to major exchanges like Upbit, Bithumb, and Coinone.
Historical milestones include the first-time implementation of such a fee in South Korea’s crypto sector. This regulation aims to enhance oversight and protect users, with fees based on the previous year’s operating revenue.
For example, Upbit will pay approximately $199,400, while Coinone will contribute around $4,400. Smaller exchanges like Korbit, with lower revenue, are exempted.
A standout feature of the new law is the requirement for exchanges to keep 80% of users’ assets in cold storage, separate from company funds. This measure ensures better asset security and risk management.
With these regulations, South Korea aims to bolster the integrity and safety of its crypto market, marking a significant step in global crypto oversight.
