South Korea to regulate cross-border crypto trades by 2025
South Korean authorities will regulate cross-border digital asset transactions starting in late 2025. The Ministry of Finance mandates that businesses involved in these transactions must register and report monthly to the Bank of Korea. This regulation aims to monitor and prevent illegal crypto activities. A new classification will distinguish virtual assets from traditional foreign exchange, creating a separate regulatory category. Deputy Prime Minister Choi Sang-mok stated that virtual assets will be defined as a "third type" outside foreign exchange and capital transactions. The Korea Customs Service reported nearly 11 trillion won in foreign exchange linked to crime, with 81.3% related to crypto. The regulation is expected to take effect in the second half of 2025, as South Korea continues to develop a comprehensive regulatory framework for its digital asset industry, including the Virtual Asset User Protection Act.
