South Korea to Implement Cross-Border Crypto Trade Regulations by 2025

South Korea has announced plans to regulate cross-border digital asset transactions, with new guidelines set to take effect in late 2025. This decision, outlined in a recent statement from the Ministry of Finance, requires businesses in Korea handling overseas crypto transactions to register with relevant regulatory bodies and submit monthly transaction reports to the Bank of Korea.

This framework aims to equip authorities with a system to monitor cross-border digital transactions more effectively, curbing potential illegal activities linked to digital assets. Businesses involved in cross-border crypto trades will need to pre-register with the government and comply with periodic reporting, allowing closer oversight of these transactions. Additionally, this new regulatory approach will clarify the status of digital assets within Korea’s financial framework, separating them from traditional foreign exchange and international payment systems and placing them under a unique regulatory category.

Data from the Korea Customs Service reveals that nearly 11 trillion won (about $8 billion) in foreign exchange transactions have been flagged for criminal activity, with approximately 81.3%, or 9 trillion won ($6.48 billion), tied to cryptocurrency-related cases. This statistic underscores the government’s motivation to shield the country’s foreign exchange markets from illicit activities involving digital assets.

South Korea’s move is the latest in a series of regulatory steps to establish a robust framework for the digital asset sector. This includes the recent Virtual Asset User Protection Act, which enforces stringent compliance and security standards across the industry, affecting crypto investors and exchanges alike. With the forthcoming regulation, South Korea continues to advance its oversight of the digital asset industry, aiming to ensure the sector’s safe integration into the country’s financial ecosystem.