How to Buy Bitcoin in Korea as a Foreigner

You’ve landed in Korea, eager to dive into the dynamic world of Bitcoin. But how do you, as a foreigner, navigate the complexities of purchasing Bitcoin in a country with unique regulations and processes? It’s not as daunting as it seems, but you’ll need to know the right steps to get started. Let’s unravel the mystery behind purchasing Bitcoin in Korea as a foreigner, with a reverse-order approach to highlight key actions you should take from the moment you decide to buy.

Final Step: Executing Your First Purchase

The last step may seem obvious, but it’s worth highlighting how smoothly the transaction can actually happen once all your preparation is complete. You log into your chosen exchange, initiate the transfer of funds, and within minutes, your Bitcoin is safely stored in your wallet. But this moment is more about celebrating your journey than just hitting a button. After navigating foreign exchange policies, understanding Korean crypto laws, and setting up the necessary banking infrastructure, this is the moment of triumph.

So, how did we get here?

Before the Purchase: Selecting the Right Exchange

As a foreigner, choosing the right cryptocurrency exchange is absolutely critical. The Korean market offers several reputable platforms like Upbit, Bithumb, and Coinone. However, not all of these exchanges are easily accessible to non-Korean citizens, so you need to make a careful selection based on ease of use, security, and legality.

Many foreigners opt for international exchanges like Binance or Kraken that are operational in Korea. These exchanges typically offer support in English and are more aligned with global standards, making them easier to use if you’re unfamiliar with Korean. Still, local platforms often offer better liquidity for the Korean Won (KRW), which can lead to more favorable trading conditions.

Here’s a comparison table of popular exchanges in Korea for foreigners:

Exchange	Foreign Access	Support Language	Local Liquidity	Fees
Upbit	Limited	Korean/English	High	Low
Bithumb	Limited	Korean/English	High	Medium
Binance	Open	English/Korean	Medium	Low
Kraken	Open	English	Medium	Low

Verification: The Critical KYC Process

Before buying Bitcoin on a Korean exchange, you’ll need to pass KYC (Know Your Customer) verification, which can be somewhat rigorous for foreigners. Korean exchanges require you to verify your identity by uploading documents such as your passport, visa status, and proof of address.

For foreigners, this can be the most time-consuming step, as it may involve getting your documents translated or submitting additional proofs of identity. Local exchanges like Upbit and Bithumb also require you to have a Korean phone number, and often a local bank account, which can be another hurdle.

Here’s what you’ll need for most exchanges:

• Passport
• Valid Korean Visa
• Korean Phone Number
• Korean Bank Account (optional but recommended)

Pro Tip: If you plan on staying in Korea long-term, setting up a Korean bank account is a wise move. Not only will this simplify your Bitcoin purchases, but it also allows you to directly deposit your earnings or convert your Bitcoin into KRW.

Banking Integration: A Key Step for Foreigners

To buy Bitcoin, having access to a Korean bank account makes life a lot easier. Korean exchanges like Upbit and Bithumb require you to have a domestic bank account for easy KRW deposits and withdrawals.

As a foreigner, opening a bank account in Korea is possible, but the process may take time. Most major banks like KB Kookmin, Shinhan, and Woori Bank allow foreigners to open accounts, provided they have the correct visa type (residence visas like F-2, F-5, or F-6 work best). Make sure to bring your ARC (Alien Registration Card), visa, and passport when opening your account.

Alternatives: What if You Don’t Have a Korean Bank Account?

If setting up a Korean bank account isn’t feasible, don’t worry. You can still buy Bitcoin via international platforms like Binance or Kraken. These platforms allow you to trade Bitcoin using your home country’s bank account or credit card. However, you might face slightly higher fees and longer transaction times due to currency conversion.

In such cases, consider using peer-to-peer (P2P) platforms like LocalBitcoins or Paxful, where you can directly buy Bitcoin from other individuals. While the fees on P2P platforms can sometimes be higher, they are a viable option if you’re unable to meet the banking requirements for local exchanges.

Crypto Laws in Korea: What You Need to Know

Understanding Korea’s crypto regulations is crucial before making any transactions. South Korea has a relatively strict regulatory framework regarding cryptocurrencies, especially in regard to preventing money laundering and ensuring transaction transparency.

Foreigners are allowed to purchase and trade cryptocurrencies, but Korean exchanges require strict adherence to AML (Anti-Money Laundering) and KYC regulations. As of 2021, Korean law mandates that all cryptocurrency transactions must be linked to a real-name bank account, which means you’ll need to ensure that your banking information is correctly verified before you can start trading.

Here’s a quick overview of key regulations:

• Real-Name Verification: Both domestic and international exchanges require real-name accounts.
• Transaction Reporting: Exchanges are required to report any suspicious transactions.
• Capital Gains Tax: Starting in 2023, Korea imposes a 20% capital gains tax on cryptocurrency profits exceeding KRW 2.5 million per year.

Security: Protecting Your Bitcoin in Korea

Once you’ve successfully bought Bitcoin, the next step is securing it. While exchanges offer wallet services, it's highly recommended to transfer your Bitcoin to a private wallet for better security. Korean exchanges have faced hacking attempts in the past, so using a hardware wallet like Ledger Nano or Trezor is a smart choice to keep your funds safe.

A Word of Caution: Beware of Scams

Korea’s vibrant cryptocurrency market has also attracted its fair share of scammers. Stay vigilant and avoid unsolicited offers from unknown parties promising incredible returns. Stick to trusted exchanges and never share your private keys with anyone.

The journey of buying Bitcoin in Korea as a foreigner can be complex but rewarding. By choosing the right exchange, completing the KYC process, and staying compliant with Korean regulations, you can safely enter the crypto world and enjoy the benefits of Bitcoin ownership.

Now that you’ve learned the ropes, your first Bitcoin purchase in Korea is just a few clicks away.