South Korea to monitor cross-border trades with crypto

crypto.news · 2024-10-24T23:48:14+00:00

South Korea is set to regulate cross-border transactions of cryptocurrencies from mid-2025. Businesses must register with regulators and declare monthly transaction details to the central bank. The move comes as South Korea recorded $8bn in foreign exchange-related crimes in 2020, of which 81.3% were linked to cryptocurrencies, raising concerns about the destabilisation of the country's foreign exchange market. The government seeks to strike a balance between responsible growth for the crypto industry and safeguarding the financial system.

crypto.news

2024-10-24 23:48:14

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South Korean authorities will impose regulations on cross-border crypto transactions, requiring businesses to register and report from mid-2025.

South Korea plans to implement regulations governing cross-border transactions of virtual assets, including cryptocurrencies, with new registration and reporting requirements set to take effect in the second half of 2025, Reuters reports, citing South Korea’s Ministry of Economy and Finance.

Under the forthcoming regulations, businesses engaged in cross-border crypto trading will be mandated to register with the authorities prior to conducting operations, the press release reads. They will also be required to report their monthly transaction details to the Bank of Korea, South Korea’s central bank.

Since 2020, South Korea has recorded 11 trillion won (nearly $8 billion) in foreign exchange-related crimes, with a significant 81.3% of these cases linked to crypto, per data from the customs agency. The government’s heightened regulatory focus reflects concerns that these assets are operating largely outside formal oversight, potentially destabilizing the country’s foreign exchange market.

The Ministry of Finance indicated that the new regulations will be introduced following the completion of necessary legislative processes, which means it’s unclear when exactly the new rules will come into force.

With the measures, South Korea signals its intention to safeguard its financial while allowing for the responsible growth of crypto in the economy. As crypto.news reported earlier, more than a dozen crypto exchanges closed in 2024, leaving customers with $12.8 million in inaccessible assets.

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