South Korea to monitor cross-border trades with crypto

South Korea is set to introduce new regulations governing cross-border cryptocurrency transactions, requiring businesses involved in crypto trading to register and report their activities starting in mid-2025.

According to a report from Reuters, the regulations will mandate businesses engaged in cross-border crypto transactions to register with the authorities before operating. Additionally, these businesses will be required to report monthly transaction details to South Korea’s central bank, the Bank of Korea.

The move comes in response to concerns over the growing role of cryptocurrencies in foreign exchange-related crimes. Since 2020, South Korea has reported 11 trillion won (around $8 billion) in such crimes, with an alarming 81.3% of these cases linked to cryptocurrencies, according to data from the customs agency. The government’s increased regulatory focus reflects worries that cryptocurrencies are largely operating outside formal oversight, potentially destabilizing the country’s foreign exchange market.

The Ministry of Economy and Finance has stated that the regulations will be rolled out after completing necessary legislative processes, though the exact timing of the new rules remains unclear.

These measures demonstrate South Korea’s commitment to balancing financial system protection with fostering the responsible growth of cryptocurrency within the country’s economy. As Pinetbox.com reported earlier, more than a dozen crypto exchanges shut down in 2024, leaving users with $12.8 million in inaccessible assets—highlighting the growing need for clearer regulatory frameworks.