The South Korean Government Is Considering Easing the Thresholds for Cross-Border Virtual Asset Transfer Services

## Summary
The South Korean government plans to bring cross-border transfers of virtual assets under the supervision of the Foreign Exchange Transactions Act, allowing fintech companies beyond trading firms to participate, and promoting cross-border remittances and foreign exchange exchange markets. The amendment was passed this month, with a 6-month transition period, and will officially take effect in December. The core measure is the establishment of a new category called “virtual asset transfer business.” Companies must register with the Minister of Strategy and Finance, and when cross-border transfers occur, must report relevant data to the foreign exchange information system.

BlockBeats news, June 19, citing Korean media SBS, reported that as the virtual asset overseas transfer business system is expected to be implemented in December this year, the South Korean government is considering allowing fintech companies outside of trading platforms to participate as well. Industry insiders believe this could officially kick off South Korea’s cross-border remittance and foreign exchange exchange market based on virtual assets. According to today’s information from relevant authorities and industry sources, the South Korean government has recently started drafting an implementation decree for part of the Foreign Exchange Transactions Act and is reviewing the registration requirements for virtual asset transfer businesses. On the 2nd of this month, the South Korean government approved and published the partial amendments to the Foreign Exchange Transactions Act through the State Council meeting. The amendment sets a 6-month transition period and will officially take effect in December this year. The core of the bill is to bring cross-border transfers of virtual assets under the regulatory framework of the Foreign Exchange Transactions Act, and to establish a new category of “virtual asset transfer business.” Companies planning to carry out the relevant business must register with the Minister of Strategy and Finance, and when cross-border transfer transactions take place, must report the relevant data through the Korea’s foreign exchange information system via the banks.