South Korea Mandates Reporting for Cross-Border Crypto Transfers

The South Korean government has announced plans to require reporting of all cross-border virtual asset transfers to the Bank of Korea’s foreign-exchange computer network. The new rules, set to take effect on December 3, will also share this data with the National Tax Service, the Korea Customs Service, the Financial Supervisory Service, and the Financial Intelligence Unit.

The proposed revision to the enforcement decree of the Foreign Exchange Transactions Act introduces a new category called “virtual asset transfer services.” This covers transfers between domestic and overseas virtual-asset service providers as well as personal wallets. Operators will need to register and meet specific requirements, including establishing the necessary computer systems and hiring at least two professionals with relevant experience or training.

The government aims to strengthen oversight of illegal foreign-exchange transactions and unlicensed remittances using virtual assets. Penalties for violations, such as voice phishing, illegal trade payments, or unlicensed remittances, will be toughened under a one-strike-out rule that could revoke an operator’s registration after a single offense.

The Korea Customs Service’s inspection scope will also expand, allowing it to investigate related transactions during import and export deal inspections without additional procedures. The Ministry of Economy and Finance will accept public comments on the proposal until October 26 before finalizing the changes.