South Korea to monitor cross-border trades with crypto

South Korean authorities will introduce regulations on cross-border crypto transactions, requiring businesses to register and report starting in mid-2025.

South Korea plans to implement regulations governing cross-border transactions of virtual assets, including cryptocurrencies, and new registration and reporting requirements will come into force in the second half of 2025, Reuters reported, citing the South Korean Ministry of Economy and Finance.

The press release stated that under upcoming regulations, businesses engaged in cross-border crypto trading will be required to register with authorities before conducting their operations. They will also be required to report monthly transaction details to the Bank of Korea, South Korea’s central bank.

According to data from the customs agency, 11 trillion won (about $8 billion) in currency-related crimes have been recorded in South Korea since 2020, with 81.3% of these cases being crypto-related. The government’s increased regulatory focus reflects concerns that these entities operate largely outside official oversight, potentially destabilizing the country’s foreign exchange market.

The Ministry of Finance stated that new regulations will be made after the necessary legal processes are completed. This means it is unclear exactly when the new rules will come into force.

With these measures, South Korea is signaling its intention to protect its financial system while allowing the responsible growth of cryptocurrency in the economy. As Crypto.news previously reported, more than a dozen crypto exchanges have closed in 2024, leaving customers with $12.8 million in inaccessible assets.