South Korea Proposes Registration for Cross-Border Crypto Transfers

South Korea proposed bringing cross-border virtual-asset transfers under tighter foreign-exchange oversight, requiring operators to register and report transactions to help detect regulatory evasion and illicit fund movements.

The Ministry of Economy and Finance opened public consultation on an amendment to the Enforcement Decree of the Foreign Exchange Transactions Act on Oct. 7 in South Korea, or Oct. 6 ET. The proposal would define the scope of virtual-asset transfer businesses covering transactions between South Korea and overseas markets.

Transfers handled through custody, management or intermediary services would fall within the proposed framework. Transfers between South Korean virtual-asset service providers and individual wallets would also be included.

Operators would have to register before conducting the business and meet requirements for computer systems and at least two specialized employees. Transfer records would be submitted through the Bank of Korea’s foreign-exchange computer network.

The records could be shared with the National Tax Service, Korea Customs Service, Financial Supervisory Service and Korea Financial Intelligence Unit. The information-sharing framework is intended to monitor the use of crypto to bypass foreign-exchange controls and move funds illegally.

The measure remains a proposal pending the public consultation and further rulemaking.