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🇰🇷 South Korea /Economy & Trade

South Korea to establish system for monitoring virtual asset flows

From Chosun Ilbo · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • The South Korean government will establish a monitoring system to track the inflow and outflow of virtual assets.
  • Under the revised Foreign Exchange Transactions Act, virtual asset service providers must register with the government and report cross-border virtual asset transfers to the Bank of Korea.
  • Non-compliance with registration or reporting requirements will result in penalties similar to those for traditional foreign exchange institutions.

South Korea is set to bolster its oversight of the cryptocurrency market by implementing a new system to monitor the movement of virtual assets across its borders. This initiative aims to enhance transparency and prevent illicit activities related to digital currencies.

The government has approved amendments to the Foreign Exchange Transactions Act, which will require all virtual asset service providers (VASPs) to undergo a pre-registration process. Furthermore, these entities will be obligated to report all cross-border transfers of virtual assets through the Bank of Korea's foreign exchange transaction network.

Failure to comply with these new regulations, whether by not registering or by neglecting reporting duties, will incur penalties. The sanctions will be comparable to those imposed on institutions involved in traditional foreign exchange services, signaling the government's serious intent to regulate the virtual asset sector.

About this summary

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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