South Korea will begin enforcing revised rules under its Foreign Exchange Transactions Act on Dec. 3, requiring domestic virtual asset service providers to report cross-border crypto inflows and outflows on a transaction-by-transaction basis. Under a Bank of Korea manual, each report must be filed by 11 a.m. on the next business day after a transaction is completed and include the transaction time, asset type and amount, KRW-converted value, fees, and information on both the sender and recipient.
The rules also require firms to submit a monthly balance report, known as FX1021, by 5:30 p.m. on the 10th day of the following month. That filing must include each user’s month-end holdings, KRW-converted balance, and total cross-border inflows and outflows for the month. The scope covers dormant accounts, delisted tokens, and staked assets, while direct transfers between personal wallets are excluded.
The retrospective scope is based on users who have made at least one cross-border transfer since July 19, 2024, when the Virtual Asset User Protection Act took effect. Across South Korea’s five major exchanges, that affects 1,272,878 users. The Bank of Korea said the data will be shared with the National Tax Service, Korea Customs Service, Financial Supervisory Service, and Korea Financial Intelligence Unit, and added that it is considering moving the retrospective starting point to Dec. 3, with the final scope to be decided in November.
South Korea’s revised Foreign Exchange Transactions Act will take effect on Dec. 3, bringing in transaction-by-transaction reporting requirements for cross-border crypto transfers.
According to a Bank of Korea manual, domestic virtual asset service providers must report each cross-border crypto inflow and outflow by 11 a.m. on the next business day after the transaction is completed.
Required fields include the transaction time, the type and amount of the asset, the value converted into Korean won, fees, and information on both the sender and the recipient.
Monthly FX1021 filing also required
In addition to per-transaction reporting, service providers must submit a monthly balance report, FX1021, by 5:30 p.m. on the 10th day of the following month.
The filing must include each user’s month-end holdings, the balance converted into Korean won, and total cross-border inflows and outflows during the month.
The reporting scope covers dormant accounts, delisted tokens, and staked assets. Direct transfers between personal wallets are excluded.
1,272,878 users across five major exchanges fall within scope
The retrospective scope is based on users who have had at least one cross-border transfer record since July 19, 2024, when the Virtual Asset User Protection Act took effect. By that measure, the five major exchanges in South Korea together account for 1,272,878 users.
The Bank of Korea said the data will be shared with the National Tax Service, the Korea Customs Service, the Financial Supervisory Service, and the Korea Financial Intelligence Unit.
Final retrospective scope due in November
The central bank also said it is considering relaxing the retrospective starting point to Dec. 3. The final scope will be determined in November.
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