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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 to Implement Crypto Regulations
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. The Ministry of Economy and Finance has announced these measures to enhance oversight and stability in the financial system.
Registration and Reporting Requirements
Under the forthcoming regulations, businesses engaged in cross-border crypto trading will be mandated to register with the authorities prior to conducting operations. These businesses will also be required to report their monthly transaction details to the Bank of Korea, the country’s central bank.
Background and Rationale
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, according to 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.
Impact on the Crypto Market
With the measures, South Korea signals its intention to safeguard its financial system while allowing for the responsible growth of crypto in the economy. As earlier reports indicated, more than a dozen crypto exchanges closed in 2024, leaving customers with $12.8 million in inaccessible assets. These new regulations aim to prevent such occurrences by ensuring better oversight and accountability.
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