South Korea plans to ramp up regulation over cross-border transactions using cryptocurrencies to curb foreign exchange crime involving digital assets, the countrys Minister of Economy and Finance Choi Sang-mok announced at a G20 meeting in Washington on Thursday, according to South Korean news reports.
Choi said that businesses that handle “cross-border transactions” of stablecoins and other cryptocurrencies will be required to pre-register with the authorities, as well as report details of such transactions to the Bank of Korea on a monthly basis, Edaily reported.
The reported transaction data will be monitored by South Koreas tax, customs, financial and international finance regulatory bodies to track illegal transactions and use for research.
According to the Korea Customs Service, around 88% of foreign exchange crimes, valued at 1.65 trillion won ($1.2 billion), had been involved with cryptocurrencies. Such crimes include illegal arbitrage and money laundering.
To establish the legal basis for the planned new mandates, Choi reportedly said that the ministry will amend the Foreign Exchange Transactions Act to define “virtual assets” and “virtual asset business operators” in a new category, separate from foreign exchange, means of overseas payment, or capital transactions.
The minister said he expects the legal revisions to be finalized by the first half of 2025, with the reporting and monitoring system officially launching in the second half.