Crypto Payment Gateways in South Korea for Merchants to Choose

Key Insights:

• Despite having stricter regulations, South Korea remains one of the most crypto payment-friendly countries.
• Virtual Asset Service Providers (VASPs) in Korea need to collaborate with Korean banks to provide crypto-to-fiat services.
• Danal is considered the crypto payment pioneer in the country through its subsidiaries.

South Korea is among the most active countries in terms of crypto payments. Active cryptocurrency adoption is driving the development of the entire digital asset ecosystem in South Korea.

Well-developed fintech infrastructure and a regulatory framework have an impact on the growth of the crypto payment market in the country.

In 2026, crypto payment gateways will become more popular in South Korea. Exchange-bank partnerships and tourist-oriented solutions are contributing to the increased popularity of virtual assets in the country.

Regulation Influencing the Development of Crypto Payment in South Korea

Two pieces of legislation regulate cryptocurrency in South Korea. That includes the Virtual Asset User Protection Act and the Act on Reporting and Use of Specific Financial Transaction Information. The laws oblige Virtual Asset Service Providers (VASPs) to receive relevant licenses.

Crypto exchanges in South Korea should partner with banks to provide their customers with real-name-verified KRW accounts. Such a measure aims at preventing excessive speculation and unauthorized foreign exchange activities.

Regulators are working to increase control over cross-border crypto transactions. The reporting of cryptocurrency flows is proposed to be introduced in order to increase control over crypto payments.

Rules for corporate investment in cryptocurrencies were revised in early 2026. Public corporations can now buy top cryptocurrencies. Companies can invest up to 5% of their equity in approved digital assets.

Merchant payments in cryptocurrencies are available only to foreign tourists to protect investors and maintain AML procedures. Solutions that offer instant conversion of crypto into KRW for foreign tourists help them avoid additional foreign exchange costs.

Danal and Paycoin (PayProtocol): Crypto Payment Pioneers

Danal is known for its work with cryptocurrencies and blockchain, thanks to its subsidiary, PayProtocol, and Paycoin ecosystem. Around 2019 and 2020, Paycoin was launched to bring crypto payments into the daily transactions of consumers.

Paycoin integrated crypto payments with the merchants of Danal. Merchants could receive payments in virtual assets without significantly changing their payment systems, thanks to integration with Paycoin.

Crypto payment gateway PayProtocol’s official page | Source: payprotocol.io

The platform reportedly had more than 150,000 merchants in South Korea and over a million users at its peak. Fast payments enabled by blockchain technology are low-cost compared to traditional solutions.

Paycoin became one of the first solutions to offer crypto payments in Korea, with a high rate of real-world adoption. The platform heavily relied on the payment infrastructure of Danal. The project also pursued international growth through partnerships, including collaborations with Triple-A and Mastercard.

However, at the beginning of 2023, the Financial Intelligence Unit suspended the operations of Paycoin. That happened because PayProtocol was unable to find a compliant banking partner.

PayProtocol reapplied for the license and continues focusing on international projects and product development. As of 2026, the company continues operating its wallet service and payment system.

Danal proved that there are challenges and opportunities for crypto payment companies in regulated environments. Although the company did not achieve domestic success, Paycoin laid the foundations for the further growth of crypto payment solutions.

Traditional PGs Integrating Crypto Payment Gateways: KG Inicis and KSNET

South Korea’s leading payment providers incorporate crypto payment options into their platforms without changing their existing systems. Such a solution allows merchants to benefit from crypto payments while keeping their traditional settlement system intact.

KG Inicis controls nearly 40% of South Korea’s PG market and serves about 190,000 merchants. In March 2026, the company partnered with Crypto.com, allowing tourists to make payments via Crypto.com Pay.

Visitors to duty-free shops and e-shops can pay with any cryptocurrency or stablecoin. At the same time, merchants receive instant KRW settlement of payments.

Thus, this solution allows tourists to avoid foreign exchange and dynamic currency conversion fees while keeping payments in digital assets. Payments continue going through familiar settlement systems.

In 2025, in the middle of the year, KSNET also partnered with Crypto.com, targeting multiple industries. That includes fashion, beauty, retail, and duty-free shopping. These partnerships offer a solution that allows traditional PG to enhance its network by selectively integrating cryptocurrency payments.

Coinplug: One of the First Cryptocurrency Payment Startups

Coinplug is one of the oldest blockchain companies in South Korea, which was founded in 2013. Initially, the company worked on Bitcoin exchange, wallet, and POS payment services.

The company developed some of the first mobile applications for Bitcoin in South Korea, as well as other blockchain products. Over time, Coinplug amassed a significant patent portfolio spanning payments, digital identity, and enterprise blockchain technologies.

Coinplug collaborated with major financial institutions such as Kookmin Bank on a blockchain-based remittances project. The company was exploring different possibilities of using blockchain for foreign exchange and international payment services.

Later, the focus of Coinplug was shifted to enterprise blockchain infrastructure, decentralized identity, and government projects. The company no longer operates as a leader in retail cryptocurrency payment gateways.

However, its contribution to the development of the South Korean blockchain payments market is considerable. Today, Coinplug provides DID-based payment services and blockchain infrastructure solutions for the market.

Exchange-Bank Partnerships: The Key to Crypto On-Off Ramps

The crypto payments market in South Korea relies largely on the cooperation between exchanges and banks. Their partnerships enable compliant KRW deposits and withdrawals in line with real-name account requirements.

Upbit is the largest cryptocurrency exchange in South Korea, as measured by trading volume and market share. The exchange maintains a long-term partnership with K-Bank, South Korea’s leading internet-only bank.

Such a partnership makes a considerable contribution to the exchange’s market dominance and stability. K-Bank possesses significant deposit amounts related to crypto trading.

Bithumb, the second-largest cryptocurrency exchange in the country, began cooperating with KB Kookmin Bank in March 2025. The decision was made after terminating Bithumb’s previous contract with NH NongHyup Bank.

Many banking contracts are relatively short because financial institutions are trying to manage regulatory risks. For example, Bithumb’s partnership relations consist of six-month contracts.

Korbit, one of the oldest cryptocurrency exchanges in the country, continues to cooperate successfully with Shinhan Bank. Other examples of exchange-bank partnerships include Coinone and Kakao Bank, as well as Gopax and Jeonbuk Bank.

Such partnerships are crucial because they facilitate fiat and cryptocurrency transactions. Without banks, exchanges cannot provide their customers with compliant KRW deposit and withdrawal services.

Challenges and Future Prospects

There are several factors constraining the further growth of crypto payments in South Korea, despite recent achievements. Compliance with AML/KYC regulations and volatility are important obstacles for many consumers and businesses in the country.

Currently, the best opportunity to grow in the crypto payments market is to target foreign tourists. Tourist-oriented solutions that address visitors’ practical problems can provide the company with a competitive advantage.

Further advances in stablecoin adoption and interoperability of payment solutions can significantly stimulate market growth. Corporate investments in cryptocurrencies, which were allowed in 2026, might spur further experimentation.

Companies such as Crypto.com will probably expand their presence in the South Korean market. At the same time, companies with domestic business models will probably improve their approaches to satisfy regulatory requirements.

Sandbox programs and future policy changes will probably impact adoption rates significantly. High smartphone usage and a mobile payments culture are the important strengths of South Korea in the context of hybrid payment systems.

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