How to Buy Crypto in Korea?

The complicated world of crypto is still a young and actively developing sector. That's why in many jurisdictions, the legal clarity for digital finance remains shady and uncertain. Today, we'll research every important thing about crypto in Korea and answer the most popular questions. Let's begin!

Is It Legal to Buy Crypto in Korea?

Yes, you can legally buy,store and trade cryptocurrency in South Korea.

However, it works on certain conditions. The country has been building clear rules for several years: since July 2024, a law on the protection of virtual asset users has been in force. It enshrines the basic rules for exchanges and ways to protect investors such as KYC procedures and security measures. The law against money laundering also obligates all crypto services — exchanges, wallets, custodians — to register, verify the identity of customers, and track the movement of funds between platforms. All this is monitored by several authorities at once: the Financial Services Commission (FSC) develops policies and supervision, Financial Intelligence Korea (KoFIU) accepts registration and monitors compliance with AML rules, and the Financial Supervision Service (FSS) controls the market itself.

As a result, crypto in Korea is completely legal but is under strict financial control of the state.

Ways to Buy Crypto in Korea

There are several ways to buy crypto in South Korea, each with its own advantages and disadvantages. Let’s take a look at the main options.

Centralized Exchanges (CEXs)

A centralized exchange is an online platform that simplifies entry into cryptocurrency for beginners thanks to its advanced trading system. Nowadays, CEX is one of the most popular ways to buy crypto directly thanks to on-ramp features, and for experienced users such platforms offer all the tools needed to work with crypto, including trading, staking, withdrawals to bank account, cryptocurrency conversion, and transfers.

Examples: Cryptomus, Upbit (partner of K-Bank), Bithumb (KB Kookmin Bank).

• Pros: user-friendly interface, various cryptocurrencies, strong security measures.

• Cons: KYC always required.

Decentralized Exchanges (DEXs)

On DEXs, users purchase crypto on decentralized exchanges directly through smart contracts without intermediaries.

Examples: Uniswap, Curve, Jupiter.

• Pros: full control over finances, no KYC, ability to buy tokens that are not available on CEXs.

• Cons: security fully depends on you, risk of receiving non-AML-compliant funds.

P2P (Peer-to-Peer) Platforms

P2P marketplaces let users buy crypto directly from each other, setting their own rates and choosing the most convenient payment methods.

Examples: Cryptomus P2P, Binance P2P, OKX P2P.

• Pros: flexible payment methods (bank transfers, payment services), low fees.

• Cons: fraud risk, takes time to find a suitable offer.

Online Exchangers

These are instant crypto swap sites that allow quick purchase of crypto with a debit/credit card or e-money service.

Examples: Mercuryo, Alchemy Pay, MoonPay.

• Pros: fast and convenient, multiple payment options (by card, mobile money, or bank transfer).

• Cons: high fees and spreads, restrictions on transaction amounts.

Step-By-Step Guide on Buying Crypto in Korea

The most convenient and common way to buy crypto out of all the ones we've mentioned is through centralized exchanges. This is the method we'll cover in our guide.

So, to buy cryptocurrency in Japan through CEX, you need to:

1. Choose a CEX that works with won.

2. Register an account.

3. Complete KYC and enable 2FA.

4. Fund your account in won.

5. Buy the crypto.

Now, let's look at each of these steps in more detail.

Choosing a CEX

Make sure the exchange supports deposits/withdrawals in won and works with local banks. Familiarize yourself with the accessibility of the features and the interface, and decide if it fits your taste.

Account Registration

Enter your email/phone number and create a strong password. Confirm them to unlock basic access to your account.

KYC Verification and Setting up 2FA

Upload a document (passport/ID), take a selfie, and upload these to the site to pass the KYC procedure. Then, enable 2FA for an extra layer of protection.

Depositing Funds in Won

Fund your wallet balance with won via bank card or a local fintech app.

Buying Crypto

The easiest way for beginners is to buy crypto directly on an exchange using services like Mercuryo or exchange integrations with bank cards and e-wallets. You simply select the desired crypto, enter the amount in it or in won, confirm the payment, and then the coins are credited to your wallet.

Check whether the coins have come to your wallet, and transfer them to another one, if you want. You can also store crypto on the exchange's native wallet.

Simple Way to Buy Crypto with Your Credit Card

Now let’s dive into the process of buying crypto with your credit card. We’ll take Cryptomus as an example:

• Step 1: Sign up for a Cryptomus account to get your personal cryptocurrency wallet. Don’t forget to protect it by enabling 2FA and setting a strong PIN.

• Step 2: To buy cryptocurrency on Cryptomus, you need to pass the KYC procedure: take a selfie, provide your documents, and verify your contact info. You may do it through your personal account settings.

• Step 3: Return to the dashboard and click “Receive”. Fill in all your criteria: select the desired cryptocurrency to buy and a suitable network. Then choose “Fiat” as a type of receive option when you’re buying crypto with a debit or credit card.

• Step 4: Click on “Receive via Mercuryo” and fill in the gap with the amount you’re going to pay in the preferred currency. The receiving amount of crypto will be automatically calculated in the payment form.

• Step 5: Next, fill in your email address for getting a verification code, and enter your debit or credit card details to make a purchase. Then confirm the action.

Well done! You’ve just bought cryptocurrency with a card without any complications. The funds will be credited to your personal wallet soon!

Do You Have to Pay Taxes on Cryptocurrency Investments?

In South Korea, crypto taxes are not yet in effect, but the system is already fully prepared and will enter into force in 2027. The state considers cryptocurrency as a digital asset and income from its sale or exchange as capital profit, that is, profit from investments.

When the law takes effect, investors will pay 20% income tax if they made more than 2.5 million won (roughly $1,800) from crypto in a year. Anything below this amount will not be taxed. The tax includes income from the sale of coins and the exchange of one cryptocurrency for another, as well as from staking and airdrops if they bring real profit.

To take into account profits, the state will use an automatic reporting system: Korean exchanges will be required to transfer information about the movement of funds and user transactions to the tax authorities. Foreign exchanges can also fall under these rules if they work with Korean citizens.

Now the government and the National Tax Service (NTS) are testing infrastructure and conducting educational campaigns so that people understand in advance how they will pay the tax. Until 2027, there are no deductions — you can trade freely, but it is recommended to save the history of transactions and profits so that later you can easily submit a declaration.

Did you find this article useful? Did we answer all of your questions? Let us know in the comments below!