South Korea to Require Registration for Cross-Border Crypto Transfers

South Korea will introduce a preregistration system and an integrated monitoring regime for businesses handling cross-border virtual-asset transfers, aiming to curb the use of crypto assets to evade foreign-exchange rules and facilitate illegal transactions.

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

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

The information collected will be shared with agencies including the National Tax Service, Korea Customs Service, Financial Supervisory Service and Financial Intelligence Unit for investigations into illegal foreign-exchange transactions and money laundering. Businesses that violate the registration requirement or refuse reporting or inspections will face sanctions equivalent to those imposed on existing foreign-exchange service providers.

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