According to The Block, the South Korean National Assembly passed an amendment to the Foreign Exchange Transaction Act, requiring companies engaged in cross-border transfers of crypto assets to register with the Minister of Planning and Finance, and introducing a new definition of “virtual asset transfer business” encompassing cryptocurrency exchanges and digital asset custodians. The Financial Services Commission plans to extend the Travel Rule to all crypto transactions and intends to impose a 22% tax on crypto asset gains exceeding 2.5 million Korean won, effective January 2027.
South Korea Passes Amendment to Strengthen Cryptocurrency Cross-Border Regulations
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Summary
South Korea has passed a new amendment to the Foreign Exchange Transaction Act, requiring crypto exchanges and digital asset custodians to register with the Minister of Strategy and Finance. The law establishes a new category: "virtual asset transfer business." The FSC intends to apply the Travel Rule to all crypto transactions and will tax crypto gains exceeding 2.5 million KRW at 22% starting in 2027. This update brings significant changes to digital asset regulations and impacts crypto exchange news worldwide.
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