South Korea is set to introduce regulations aimed at overseeing cross-border cryptocurrency transactions, with new registration and reporting requirements expected to be enforced in mid-2025. This initiative was announced by the Ministry of Economy and Finance, as reported by Reuters.
According to the forthcoming regulations, businesses involved in cross-border crypto trading will be required to register with government authorities before initiating their operations. Additionally, these businesses must submit monthly transaction details to the Bank of Korea, the nation’s central bank.
The move comes in response to alarming statistics regarding foreign exchange-related crimes in South Korea. Since 2020, the country has reported nearly 11 trillion won (approximately $8 billion) in such crimes, with an overwhelming 81.3% of these incidents associated with cryptocurrencies, as per data from the customs agency. This surge in illicit activities has prompted the government to take a closer look at the largely unregulated crypto sector, which poses risks to the stability of the country’s foreign exchange market.
The Ministry of Finance noted that these new regulations will be finalized after completing the necessary legislative processes. However, the exact timeline for the implementation of these rules remains uncertain.
Through these measures, South Korea aims to protect its financial system while promoting the responsible development of cryptocurrency within its economy. Earlier reports indicated that more than a dozen cryptocurrency exchanges have shut down in 2024, leaving customers unable to access approximately $12.8 million in assets.
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