According to Odaily, South Korea is considering allowing entities such as exchanges and fintech companies to participate in an upcoming virtual asset overseas remittance business system. The system is expected to be implemented in December this year, with the regulatory design focused on business registration requirements and reporting obligations for cross-border virtual asset transfers.
People familiar with the matter said the government has recently begun drafting enforcement rules for partial amendments to the Foreign Exchange Transactions Act. At the same time, authorities are reviewing registration requirements for virtual asset transfer businesses. The core of the amendment is to bring cross-border virtual asset transfers into the regulatory framework of the Foreign Exchange Transactions Act and define them as a “virtual asset transfer business.”
Under the disclosed direction, companies that intend to conduct virtual asset transfer business must register with the office of South Korea’s Minister of Economy and Finance. When cross-border transfer transactions occur, those companies must also report the relevant information through the Bank of Korea’s foreign exchange computer network. If exchanges and fintech companies are included among eligible participants, they would be brought into the virtual asset overseas remittance business system scheduled for launch.