South Korea announces new regulations on cross-border crypto transactions, requiring businesses to register and report starting in mid-2025.
The South Korean government is set to implement strict regulations on cross-border transactions involving virtual assets, including cryptocurrencies. These new requirements for registration and reporting will take effect in the second half of 2025, according to the Ministry of Economy and Finance.
Businesses involved in cross-border cryptocurrency trading will be obliged to register with the authorities before commencing operations. Additionally, they will be required to submit monthly transaction reports to the Bank of Korea, the nation’s central bank.
Since 2020, South Korea has seen foreign exchange-related crimes exceed 11 trillion won (approximately $8 billion), with a notable 81.3% of these cases linked to cryptocurrencies, according to customs agency data. The government’s intensified regulatory approach highlights concerns about the lack of formal oversight in the crypto market, which could pose risks to the stability of the foreign exchange system.
The Ministry of Finance stated that the new regulations will be finalized after the completion of relevant legislative processes, leaving the exact implementation timeline uncertain.
With these upcoming measures, South Korea aims to protect its financial system while fostering the responsible development of the cryptocurrency sector. As previously reported, over a dozen crypto exchanges shut down in 2024, resulting in customers being unable to access $12.8 million in assets.
