South Korea is tightening regulations on cross-border virtual asset transactions, requiring businesses in this sector to register and submit monthly transaction reports to the Bank of Korea by 2025.
Deputy Prime Minister Choi Sang-mok emphasized the need for stricter oversight due to rising cases of illegal foreign exchange activities, including tax evasion and money laundering involving digital assets, which he highlighted at the G20 Finance Ministers’ Meeting.
The government will introduce a monitoring system to ensure transparent virtual asset transactions and plans to amend the Foreign Exchange Transactions Act to provide a legal basis for these new measures.
South Korea’s customs agency reports that over 81% of foreign exchange crimes since 2020 have involved cryptocurrencies, driving this regulatory action.
The country has already enacted the Virtual Asset User Protection Act, leading to the closure of several virtual asset exchanges this year and enabling customers to reclaim approximately $12.8 million in stranded investments.
In 2024, South Korea remains a top destination for crypto businesses, enforcing these new regulations to bolster transparency and market legitimacy.
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