South Korea Tightens Crypto Oversight with Cross-Border Transfer Registration

South Korea has made significant strides in regulating its cryptocurrency industry with the recent passage of a law requiring firms handling cross-border crypto transfers to register with the government. The National Assembly passed an amendment to the Foreign Exchange Transactions Act, introducing a registration requirement for businesses that move crypto assets across borders.

The new rules define a 'virtual asset transfer business' as one that conducts cross-border transfers through the sale, purchase, or exchange of crypto assets, covering exchanges and digital asset custody providers. This means any entity transferring cryptocurrency to or from overseas as a business must register with the Minister of Economy and Finance.