South Korea is stepping up its monitoring of cross-border cryptocurrency transactions to address tax evasion and illegal foreign exchange activities, according to Finance Minister Choi Sang-Mok.
At the G20 meeting in Washington, Choi announced that South Korea plans to require businesses dealing in international crypto transfers to register and report all transactions to the Bank of Korea on a monthly basis.
According to local news , This new mandate aims to curb illicit financial activities, as cross-border crypto transactions have reportedly become a “blind spot” for tax and customs enforcement.
Starting by Q2 of 2025, businesses handling cross-border crypto transactions will need to pre-register with authorities, once the government establishes a legal framework under the Foreign Exchange Transactions Act. To make this possible, new definitions for “virtual assets” and “virtual asset business operators” will be added to the Act.
Recent data from Korea Customs Service reveals that 81% of foreign exchange crimes — totaling around $1.2 billion since 2020 — are connected to crypto assets. This underscores the need for stricter rules, Choi emphasized.
This is part of a broader regulatory push in South Korea to safeguard crypto investors. In July, the Virtual Asset Protection Act took effect, enforcing stronger security and insurance requirements for virtual asset service providers (VASPs). These laws also penalize crypto criminals with heavy fines and jail time.
These measures reflect South Korea’s commitment to creating a safer and more regulated crypto environment for investors.
