South Korea is considering opening up its crypto market to foreign investors. Kim Seong-jin, head of the FSC's virtual assets division, said he is willing to change the current restrictions if exchanges tighten their AML (anti-money laundering) systems. Foreigners are currently prohibited from trading on Korean platforms due to strict KYC (know your customer) requirements and the requirement to use only registered bank accounts.

Experts say such a move could eliminate the "kimchi premium" (which is the difference between the price of cryptocurrencies on local exchanges and elsewhere, as global liquidity is limited for entry) and revitalize the country's crypto industry. However, regulators still believe that exchanges are not sufficiently prepared to meet all anti-money laundering requirements, including strict compliance with the Travel Rule for transactions. The FSC has previously imposed fines for violations, as in the case of Upbit, although the court later overturned the penalty.

South Korea remains one of the largest crypto markets, with a turnover of $85 billion on Upbit alone in March. Opening up to foreigners could strengthen the country's position as a global crypto hub, especially in the altcoin segment, but requires careful preparation of the regulatory infrastructure.