As a seasoned analyst with extensive experience in the global financial landscape, I find South Korea’s move to regulate cross-border crypto transactions not only prudent but necessary. Having witnessed the rapid growth and subsequent chaos in the cryptocurrency market over the past decade, it is evident that regulatory oversight is crucial to prevent potential destabilization of a nation’s foreign exchange market.
As an analyst, I’m sharing that starting from mid-2025, I will be subject to South Korean regulations when engaging in cross-border cryptocurrency transactions. This means I will need to ensure my business is duly registered and comply with the reporting requirements set by the authorities.
Starting from mid-2025, South Korea intends to establish regulations for transactions involving virtual assets such as cryptocurrencies, with new registration and reporting procedures in place, according to the Ministry of Economy and Finance, as reported by Reuters.
According to the upcoming rules, companies dealing with cross-border cryptocurrency transactions must first register with the relevant authorities before they can start operating. Furthermore, these firms are expected to submit their monthly transaction reports to the Bank of Korea, which is South Korea’s central bank.
Since 2020, South Korea has seen approximately $8 billion in crimes involving foreign exchange transactions, with a striking 81.3% of these instances linked to cryptocurrency, according to customs agency data. The government’s increased regulatory scrutiny stems from worries that these assets are primarily operating outside official supervision, posing a threat to the stability of South Korea’s foreign exchange market.
According to the Ministry of Finance, these new rules won’t be effective right away as they need to pass through some legal procedures first. This means we can’t predict precisely when these regulations will start applying.
Through these measures, South Korea demonstrates its commitment to protecting its financial infrastructure, fostering prudent expansion of cryptocurrencies within the economy. Previously reported by Crypto.news, over a dozen crypto exchanges shut down in 2024, resulting in approximately $12.8 million worth of assets becoming inaccessible to their customers.
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2024-10-25 11:02