South Korea to Require Registration for Cross-Border Crypto Transfers

The South Korean government will introduce a pre-registration system and an integrated monitoring framework for companies handling cross-border virtual-asset transfers, aiming to block attempts to evade foreign-exchange rules and conduct illegal transactions through crypto assets.

The Ministry of Economy and Finance said on May 22 that a partial amendment to the Foreign Exchange Transactions Act was approved at a Cabinet meeting held at the presidential office. The amendment passed the National Assembly's plenary session on May 7 and was transferred to the government on May 22. It will take effect six months after promulgation on June 2.

Under the revised law, virtual-asset service providers engaged in cross-border transfer operations must register in advance with the finance minister. Once registered, they must report details of virtual-asset transfers to the Bank of Korea's foreign-exchange data network.

The information collected will be shared with related agencies, including the National Tax Service, the Korea Customs Service, the Financial Supervisory Service and the Financial Intelligence Unit, or FIU. Authorities will use the data to investigate illegal foreign-exchange transactions and money laundering. Companies that fail to register or refuse reporting or inspections will face sanctions comparable to those imposed on existing foreign-exchange business operators.

Lee Jung-woo, Hankyung.com reporter, krse9059@hankyung.com