South Korea is preparing to implement new regulations on cross-border digital asset transactions in the second half of 2025. The Ministry of Finance has announced that businesses in Korea involved in cross-border crypto trades will have to register and report monthly transactions to the Bank of Korea.
This new framework aims to provide better oversight to prevent and address crypto-related illegal activities. The proposed legislation will also provide clearer distinctions between digital assets, traditional foreign exchange and cross-border payment systems, creating a separate regulatory category for virtual assets.
These new regulations are being introduced in response to the growing number of criminal activities in the crypto market in South Korea, with over $6.48 billion in cases linked to crypto. South Korea has been working on developing a comprehensive regulatory framework for its digital asset industry, which has already led to the implementation of several initiatives, such as the Virtual Asset User Protection Act, which mandates compliance and regular assessments of the industry.
