South Korea To Open Crypto Market To Foreigners with AML Conditions

As South Korean crypto market sets its sights on global prominence, the country’s financial watchdog is considering broadening the scope for international participation. With specific anti-money laundering (AML) conditions, South Korea is opening its doors to foreign investors, allowing them to invest in the local crypto market.

South Korean Crypto Market Attracts Foreign Investors

According to a local report, the South Korean crypto market is attracting foreign investors, expanding opportunities for international participation. During a seminar on Wednesday at the National Assembly, the Financial Services Commission’s crypto head, King Sung-ji, acknowledged the need to promote foreign investors’ participation in the domestic crypto market.

Reportedly, Kim asserted that the financial regulators may bring amendments to the AML rules in an effort to attract international crypto investors. He also noted that the current conditions may be revised if exchanges meet the required AML standards.

South Korea Reconsiders Restrictions on Foreign Traders

Currently, South Korea has imposed restrictions on foreign investors entering the local crypto market. The country’s crypto regulations mandate stringent know-your-customer (KYC) requirements for service providers, restricting international traders.

Notably, the country imposes capital account restrictions, thereby maintaining strict control over portfolio investments. However, if South introduces new rules to attract international traders, these restrictions could be lifted. Presto Research team head Peter Chung stated, “Allowing foreigners to trade crypto on Korean exchanges would mute such restrictions.”

Recently, South Korean regulators have taken the initiative to strengthen its AML rules. On March 5, 2025, the Financial Intelligence Unit (FIU) convened a meeting in which they examined the AML regulations and shared inspection plans.

South Korea’s Crypto Regulatory Moves

Significantly, South Korea has been making efforts to tackle the increasing crypto threats and thefts. South Korea concentrates on bolstering the country’s crypto market growth and establishment, along with guaranteeing investor protection.

As part of the country’s stringent regulations, South Korea urged Google to restrict access to 17 crypto exchanges that allegedly operate without proper registration. Subsequently, Google blocked these platforms which include KuCoin, MEXC, Phemex, XT, CoinEx, BitMart, and Poloniex among many others.