South Korea Tightens Crypto Overseas Transfer Rules
South Korea’s National Assembly has passed a new amendment to the Foreign Exchange Transactions Act. Crypto businesses must now register with the Minister of Economy and Finance before transferring crypto assets to or from overseas. This applies to exchanges, custody firms, and any entity engaged in virtual asset transfer business.
Stronger Oversight on Cross-Border Flows
The updated law clearly defines “virtual asset transfer business” as any operation involving sale, purchase, or exchange of crypto between South Korea and foreign countries. The government aims to monitor and control cross-border crypto movements more effectively and systematically.
Expanded Travel Rule and Industry Concerns
The Financial Services Commission plans to extend the Travel Rule to all crypto transactions, removing the previous 1 million won threshold. Local industry players have raised concerns, warning that stricter rules could slow transactions and cause losses in volatile market conditions.
22% Crypto Tax Set for January 2027
South Korea will impose a 22% tax on crypto gains above 2.5 million won ($1,703) starting January 2027. This comes after multiple delays, with critics arguing that the timeline is still too early due to insufficient clarity and infrastructure
