South Korea examines crypto exchange fee structures

South Korea’s Financial Services Commission launches investigation into domestic cryptocurrency exchange fee structures following presidential campaign commitments. The probe examines current charging methods and fee levels across major platforms as part of broader youth asset formation support policies.

According to Herald Economy news, the Financial Services Commission’s investigation is a response to President Lee Jae-myung’s presidential campaign promise to decrease virtual asset transaction fees from the present 0.05% to 0.015%.

The FSC revealed this in submitting a report to the State Affairs Planning Committee on new government promise implementation plans.

FSC targets fee reduction from 0.05% to 0.015%

The commission plans to conduct in-depth surveys of virtual asset exchanges that examine their current fee structures, their charging rates, and fees charged. The rationale for the collection is to determine the actual cost burden imposed on users through transactional fees and to determine if intervention is necessary by the regulator based on evidence.

FSC officials said that there is a need to evaluate whether domestic exchange fees are excessively burdensome on consumers and if they are appropriate in relation to foreign cases. The probe is part of more comprehensive youth asset formation support policies aimed at facilitating young people to invest in cryptocurrency.

The survey will focus on large domestic exchanges like Bithumb, Upbit, and Coinone, with commission rate systems and self-reporting in mind. The FSC has not established target commission rates yet, but rather will establish policy benchmarks by comparing domestic and foreign exchanges and convenience analysis on the users’ side.

Investigation targets major exchanges

The fee model study will target South Korea’s leading cryptocurrency exchanges, including Bithumb, Upbit, and Coinone, that dominate the nation’s domestic virtual asset trading market. The survey will examine commission rate models and whether exchanges transparently disclose their fee models.

FSC members aim to develop policy guidelines from in-depth comparisons between foreign and domestic exchange fee structures, taking into account user convenience criteria as well as cost considerations. The commission has not established target commission levels but favors creating evidence-based policy recommendations through market analysis.

The investigation forms part of broader cryptocurrency regulatory updates occurring throughout 2025. These changes include enhanced compliance requirements for virtual asset service providers, with stricter oversight mechanisms designed to protect consumers while facilitating market growth.

The fee reduction is in line with South Korea’s youth asset formation policy aimed at reducing the obstacles to entry for younger generations to engage in cryptocurrency investment.

Lower transaction fees can potentially increase market access for retail investors with proportionally higher fee barriers on lower-value transactions. Subsequent regulatory policy will be shaped by survey information on fee caps or standardization on local exchanges.

South Korea lifts institutional crypto trading ban with phased rollout

South Korea terminated its ban on institutional cryptocurrency trading, implementing it in phases in 2025. The policy change allows public companies and professional investors to gain access to digital asset markets under stricter regulatory terms to enhance market integrity and protect consumers.

Tighter anti-money laundering and Know Your Customer regulations were applied by the Financial Services Commission under the institutional trading license. Professional investors and listed companies must apply tighter AML requirements, and banks are faced with strict KYC procedures to provide a haven for cryptocurrency activity.

The regulatory mechanism involves the FATF Travel Rule, where virtual asset service providers are required to receive and send detailed information on crypto transactions in excess of KRW 1 million, or equivalent to EUR 800. The requirement aims to increase the transparency of transactions and prevent criminal financial activities.

From June 1, 2025, non-profit organizations with over five years of audited experience were allowed to sell donated digital assets. The organizations have a target of 10% per day in sales and are prohibited from selling on their own platforms.

Cryptocurrencies listed on three or more exchanges based on the Korean won are the only ones eligible for sale. All such transactions are governed by anti-money laundering regulations.

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