In 2025, Strengthened Virtual Asset Regulations... "Cross-Border Transaction Reporting"

Uk Jin

Summary

The government announced plans to strengthen regulations requiring virtual asset businesses to report transaction details.
It is understood that the obligation to report cross-border transactions aims to block illegal activities such as tax evasion and money laundering.
The government stated plans to define virtual assets as a third type of foreign exchange transaction and aims to implement related legislation from the second half of next year.

According to the '2025 Economic Policy Direction' announced on the 2nd, the government has decided to strengthen regulations in the virtual asset (cryptocurrency) and fintech sectors for the advancement of the capital market.

According to the industry, the '2025 Economic Policy Direction' includes a plan to impose cross-border transaction reporting obligations on virtual asset businesses to enhance monitoring of cross-border transactions. This measure aims to block illegal foreign exchange transactions such as tax evasion and money laundering.

As a result, it is expected that businesses conducting cross-border virtual asset transactions will be required to register in advance, and registered businesses will have to regularly report transaction details to the Korean Bank.

Discussions on how to utilize virtual assets in trade and capital transactions will be handled by the Virtual Asset Committee led by the Financial Services Commission in the future. Additionally, the government plans to define virtual assets as a 'third type' of foreign exchange and capital transactions and strengthen legal regulations on virtual asset businesses through amendments to the Foreign Exchange Transactions Act. This bill is targeted for implementation in the second half of next year.

However, they only stated that they would discuss the institutionalization of trade and capital transactions using virtual assets.