South Korea to Regulate Cross‑Border Crypto Transfers, Opening Market to Fintech Firms

South Korea is preparing a new regulatory framework for overseas digital‑asset transfers. Amendments to the Foreign Exchange Transactions Act were approved by the Cabinet on June 2, 2026 and will come into force after a six‑month grace period, with the system slated to operate from December 2026. Companies that wish to offer cross‑border crypto transfer services must register with the Ministry of Economy and Finance and submit transaction details in real time through the Bank of Korea’s foreign‑exchange network.

The draft rules expand eligibility beyond traditional virtual‑asset service providers (VASPs) such as Upbit and Bithumb to include qualified fintech firms. Authorities say the broader scope will curb arbitrage exploiting the “Kimchi premium,” illegal currency movements and money‑laundering, while allowing fintechs to provide blockchain‑based remittance and payment solutions. The measures aim to formalize the market, enhance compliance and foster competition among both exchanges and fintech entrants.