South Korea Brings Crypto Firms Under Foreign-Exchange Oversight After Assembly Passes Revision
Summary
- Passage of the partial revision to the Foreign Exchange Transactions Act brings virtual-asset (cryptocurrency) businesses under the regulatory framework.
- The amendment requires businesses engaged in virtual asset transfer business to file under the Act on Reporting and Use of Certain Financial Transaction Information and then register with the finance minister.
- Related transaction data may be shared with the Financial Services Commission, National Tax Service, Korea Customs Service and Financial Supervisory Service, and the amendment could take effect as early as the end of this year.
Forecast Trend Report by Period
Virtual-asset businesses will be brought under South Korea's foreign-exchange monitoring regime.
The National Assembly on May 7 passed a revision to the Foreign Exchange Transactions Act in a plenary session, with 212 votes in favor and one abstention among 213 members present.
The amendment defines the transfer of digital assets between South Korea and overseas as a "virtual asset transfer business." Virtual-asset service providers engaged in that business must first complete a filing under the Act on Reporting and Use of Certain Financial Transaction Information and then register with the finance minister.
The revision also requires them to connect to institutions and electronic networks that relay, consolidate and exchange related transaction data. The data may be shared with relevant agencies including the Financial Services Commission, the National Tax Service, the Korea Customs Service and the Financial Supervisory Service.
The revised law could take effect as early as the end of this year.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
