South Korea Regulators Set Sights on Cross-Border Crypto Transfers

The South Korean government is taking steps to formalize its oversight of foreign exchange transactions involving digital assets. According to local reports, regulators are drafting enforcement rules under amendments to the Foreign Exchange Transactions Act. The revised law was approved by the Cabinet on June 2 and will come into effect after a six-month grace period.

The proposed regulation would permit crypto exchanges and fintech firms to handle cross-border transfers, which would be regulated as foreign exchange transactions. Companies offering these services would need to register with the Minister of Finance and Economy and submit transaction information via the Bank of Korea's forex network.

The new system is expected to begin in December 2026. The Bank of Korea official stated that transfer services should not be restricted to Virtual Asset Service Providers (VASPs) only, but rather any organization capable of providing the service could be considered, pending foreign exchange-related registration under the law.