South Korea is preparing to bring cross-border virtual-asset transfers into its foreign-exchange reporting framework, requiring relevant transaction data to be submitted to the Bank of Korea’s foreign-exchange computer network.
The planned change would come through a revision to the enforcement decree of the Foreign Exchange Transactions Act. Under the proposal, information reported to the central bank would also be shared with the National Tax Service, Korea Customs Service, Financial Supervisory Service, and Financial Intelligence Unit as authorities step up oversight of overseas crypto flows.
New reporting category for virtual-asset transfers
The government plans to publish a proposed revision that would formally create a new category called “virtual asset transfer services.” The measure is aimed at strengthening the management and supervision of cross-border virtual-asset transactions.
The proposal would cover transfers between domestic and overseas virtual-asset service providers as well as transfers involving personal wallets. In those cases, transaction data would need to be reported through the Bank of Korea’s foreign-exchange network.
Data sharing across tax, customs and financial agencies
Under the plan, the reported data would not remain only with the central bank. It would be shared with several agencies, including the tax authority, customs authority, financial supervisor, and the Financial Intelligence Unit.
According to the source article, the purpose is to help authorities monitor illegal foreign-exchange transactions and unlicensed remittances conducted using virtual assets. The proposal therefore links crypto transfer reporting more directly to existing foreign-exchange enforcement tools.
Registration and staffing requirements for operators
The draft rules would also set entry and registration standards for operators falling under the new service category. These requirements include having the necessary computer systems in place and meeting staffing standards.
The article says operators would need at least two qualified professionals. By spelling out technical and personnel requirements, the revision would add a more specific compliance framework for businesses handling covered cross-border virtual-asset transfers.
Penalties and expected timeline
The proposal includes enforcement measures for violations. In particular, illegal remittances could trigger registration revocation under what the article describes as a one-strike-out rule.
The revised enforcement decree is scheduled to take effect on December 3, but only after the public-comment process and regulatory reviews are completed. That makes the proposal’s next confirmed step the publication of the draft revision and the formal review process before implementation.
Source: en.bloomingbit.io