South Korea’s Law and Proposed Rules Focus on Crypto Transfer Reporting

South Korea’s published law and proposed enforcement-decree amendments focus on reporting cross-border virtual-asset transfers, with the law scheduled to take effect Dec. 3 and the proposal’s public-comment period ending Monday, Oct. 26.

Act No. 21714, promulgated June 2, adds definitions related to virtual assets and virtual-asset transfer businesses. The law does not establish that stablecoin payments are authorized.

The Ministry of Finance and Economy opened the comment period on proposed enforcement-decree changes from Oct. 7 through Monday, Oct. 26. The proposed amendments would require virtual-asset transfer service providers to report transfer information to the Bank of Korea’s foreign-exchange information system.

The Ministry said providers “will be required to report information on virtual asset transfers to the FX information concentration agency.” The proposed rules are intended to align with the law’s effective date, subject to further procedures.

The law and proposed amendments set out cross-border reporting measures. They do not establish that the measures authorize stablecoin payments or have driven crypto prices. The law is scheduled to take effect Dec. 3.