The South Korean Ministry of Finance and Economy has introduced new measures requiring the reporting of overseas virtual asset transfers to the Bank of Korea's foreign exchange network. This move follows a preannouncement of a partial amendment to the Enforcement Decree of the Foreign Exchange Transactions Act, aimed at reducing blind spots in illegal foreign exchange transactions.
The amendment clarifies the definition of the newly established "virtual asset transfer business" and sets registration requirements, procedures, and reporting obligations. Virtual asset transfer operators must now report details of cross-border transfers to the Bank of Korea's network. Additionally, the ministry will outline facility and professional staffing requirements for registering such businesses.
Regulations on currency exchange businesses will also be strengthened. New rules will disqualify executives and set minimum equity capital, while a system will be adopted to revoke registration for serious violations, such as voice phishing or illegal trade payments. The penalty surcharge cap will also be raised from 70% to 100%.
The Korea Customs Service's authority to inspect foreign exchange transactions will be expanded, allowing it to continue inspections of parties involved in import and export transactions if violations are identified. The amendment is expected to take effect on December 3, following regulatory reviews and deliberations by the Vice Ministers' meeting and the Cabinet meeting.