South Korea plans to enhance regulation of cross-border cryptocurrency transactions to tackle tax evasion and foreign exchange crimes, as stated by Finance Minister Choi Sang-Mok at a G20 meeting. Starting soon, businesses engaged in cross-border crypto transactions will need to pre-register with authorities and report transaction details to the Bank of Korea monthly. Choi emphasized that current enforcement capabilities are lacking, with 81% of foreign exchange crime related to digital assets, amounting to approximately $1.2 billion since 2020. The government intends to establish a legal framework to better define virtual assets and their operators under the Foreign Exchange Transactions Act, aiming to finalize revisions by mid-2025. New regulations are part of broader efforts to protect crypto investors, which also include mandates for virtual asset service providers (VASPs) to adopt strict security measures and remain accountable for any illegal crypto activities, potentially facing severe penalties.

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