South Korea’s Crypto Market Slows as VASP Approvals Drop by Half
South Korea's cryptocurrency sector faces mounting regulatory hurdles as Virtual Asset Service Provider (VASP) approvals plummeted 50% year-over-year. Only two firms gained approval in 2023 compared to four in the prior cycle, reflecting intensified scrutiny from the Financial Intelligence Unit.
The absence of comprehensive digital asset legislation has forced regulators to extend review periods beyond twelve months, disrupting business launches and chilling investment. Established operators remain in limbo despite compliance submissions, while market entrants confront increasingly stringent requirements.
This regulatory squeeze coincides with proposed legislative reforms, suggesting potential inflection points ahead for Asia's third-largest crypto economy. The bottleneck highlights the tension between innovation and oversight in jurisdictions worldwide.
