South Korean authorities will impose regulations on cross-border cryptocurrency transactions, requiring companies to register and report from mid-2025.
South Korea plans to introduce regulations governing cross-border transactions of virtual assets, including virtual currencies, with new registration and reporting requirements due in the second half of 2025, Reuters reported, citing South Korea's Ministry of Economy and Finance. It is said that it is scheduled to come into effect.
Under the upcoming regulations, companies engaged in cross-border cryptocurrency transactions will be required to register with authorities before conducting business, the press release said. They are also required to report monthly transaction details to the Bank of Korea, South Korea's central bank.
According to data from the customs authorities, since 2020, foreign exchange-related crimes have amounted to 11 trillion won (approximately $8 billion) in South Korea, of which a significant proportion of 81.3% is related to cryptocurrencies. That's what it means. The government's focus on regulation reflects concerns that these assets operate largely outside formal oversight and could destabilize the country's foreign exchange market.
The Ministry of Finance has indicated that the new regulations will be introduced after the necessary legislative procedures have been completed, so it is unclear exactly when the new regulations will come into effect.
With this measure, South Korea signals its intention to protect the financial system while allowing the responsible growth of cryptocurrencies in the economy. As previously reported by crypto.news, more than a dozen crypto exchanges will shut down in 2024, leaving customers with $12.8 million in assets inaccessible.
