Payment Services Act

When dealing with Payment Services Act, South Korea’s legal framework that regulates payment institutions, digital‑asset exchanges and related financial services. Also known as PSA, it establishes licensing requirements, consumer‑protection rules and reporting duties for crypto businesses. Understanding the Payment Services Act is the first step to navigating a market where digital assets, tokens, coins and other blockchain‑based financial instruments are treated like any other payment method. The law demands AML compliance, a set of anti‑money‑laundering controls that monitor transaction flow and flag suspicious activity and strict KYC, know‑your‑customer checks that verify the identity of users before they can trade. In plain terms, the PSA says: if you want to run a crypto exchange in Korea, you need a license, you need to keep users’ money safe, and you need to tell the authorities where that money moves.

Why the Payment Services Act matters for every crypto participant

The PSA isn’t just a Korean curiosity; it sets a template that other jurisdictions watch when drafting their own crypto rules. It shows how crypto regulation, government policies that define how digital currencies can be created, traded and stored can coexist with traditional finance. For traders, the act means fewer surprise shutdowns because exchanges must meet ongoing audit standards. For developers, it creates a clear path to launch token projects without fearing sudden bans. And for investors, it adds an extra layer of confidence that the market is being policed for fraud and illicit flow.

Our collection below pulls together real‑world examples that illustrate how the PSA plays out on the ground. You’ll see a deep dive into Upbit’s massive KYC violations, a review of how Brazil’s BityPreco handles compliance, and a look at Cuba’s unique approach to crypto licensing—all topics that intersect with the PSA’s core requirements. Whether you’re hunting for a secure exchange, trying to understand the tax impact of a regulated market, or simply want to see how AML and KYC rules affect token pricing, the articles ahead give you actionable insights. Let’s explore the breadth of coverage and practical tips that will help you stay ahead in a regulated crypto world.