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[SITUATION] · [ACTIVE]

7 clusters · 12 sources · 40 days · First seen about 1 month ago · Last updated 1 day ago

Categories: POLITICS · BUSINESS · TECHNOLOGY

South Korea expands crypto regulation to banking

Entities: Digital Asset Exchange Association (DAXA) · Financial Services Commission (FSC) · National Assembly (South Korea) · Song Eon-seok · Democratic Party (South Korea)

Overview

In June 2026 the South Korean cabinet amended the Foreign Exchange Transactions Act, obliging firms that provide overseas crypto‑transfer services to register with the Ministry of Economy and Finance and report transactions in real‑time via the Bank of Korea. The rules, effective December 2026 after a six‑month grace period, aim to curb arbitrage, illegal currency flows and money‑laundering while opening the market to fintech entrants. The Financial Intelligence Unit urged the FATF to lower the “Travel Rule” threshold for crypto, and on 1 July the Financial Supervisory Service pressed major virtual‑asset service providers to tighten internal controls, governance and product‑risk management. The Financial Services Commission referred two suspected market‑manipulation cases to prosecutors. On 2 July the Korea Exchange revised KOSDAQ listing rules, triggering delisting reviews for companies that shift primary business to digital‑asset or cryptocurrency treasury activities. The Bank of Korea’s Project Hangang demonstrated a unified ledger for wholesale digital currency and tokenised deposits and began evaluating tokenised government bonds. On 8 July the Supreme Court amended civil‑execution rules to treat virtual assets and the exchanges that hold them as seizure targets, removing a legal obstacle to crypto‑backed collateral loans for banks. In October 2026 the Digital Asset Exchange Association (DAXA) held compliance seminars for exchanges, covering the tightening regulatory framework, monitoring tools and user‑protection measures. DAXA also briefed non‑won‑based exchanges on an amendment to the telecom‑fraud refund law that will extend compensation obligations to digital assets and set procedures for payment suspension and asset repayment. The Financial Services Commission announced plans to draft a consolidated Digital Asset Basic Act with the ruling Democratic Party, setting unified rules for stable‑coin issuance, digital‑asset business operations, exchange entry criteria, disclosure, internal controls and system‑resilience.

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[○ 1 SOURCE] DAXA hosted compliance seminars in October focusing on virtual‑asset regulations for South Korean exchanges. (DAXA compliance education sessions)
[○ 1 SOURCE] DAXA held a meeting on October 28 in Seoul to explain the telecom‑fraud refund law amendment that extends to digital assets. (DAXA telecom‑fraud law briefing)
[○ 1 SOURCE] The Financial Services Commission plans to draft a consolidated Digital Asset Basic Act with the ruling Democratic Party. (FSC draft plan)
[○ 1 SOURCE] The proposed act would cover stablecoin issuance, digital‑asset business rules, exchange entry requirements, disclosures, internal controls and system‑resilience standards. (Proposed Digital Asset Basic Act contents)
[○ 1 SOURCE] Ten separate digital‑asset and stablecoin bills are currently pending in South Korea's National Assembly. (Parliamentary bill count)
[○ 1 SOURCE] An opposition bill seeks to repeal the crypto income tax that would otherwise impose a 20 % tax plus 2 % local tax on crypto earnings above 2.5 million won annually from Jan 1 2027. (Opposition crypto‑tax repeal bill)
[○ 1 SOURCE] The Finance Ministry said the crypto tax will proceed after repeated delays. (Finance Ministry statement)

Timeline

1 day ago

[POLITICS] 4 sources
South Korea pushes new crypto regulations and exchange compliance measures
South Korea's DAXA held compliance seminars and a telecom‑fraud law meeting for exchanges, while the FSC plans a consolidated crypto law covering stablecoins, amid debate over a crypto income tax repeal.
20 days ago

[BUSINESS] 3 sources
South Korea moves to lift network‑separation rule for AI‑ready banks, honors security leaders
South Korea will remove network‑separation rules for AI‑capable banks and announced related legal reforms, while awarding top financial firms and executives for cyber‑security contributions.
22 days ago

[BUSINESS] 2 sources
South Korea and US regulatory moves enable crypto‑backed bank loans
Korea’s new court rules and the US Clarify Act remove legal barriers, allowing banks to use cryptocurrency as loan collateral and expand digital‑asset services.
28 days ago

[BUSINESS] 2 sources
Korea Exchange Tightens KOSDAQ Rules on Crypto Treasury Business Shifts
KRX revises KOSDAQ rules to require delisting reviews for firms that shift to crypto treasury businesses within five years, adding disclosure duties during grace periods.
28 days ago

[BUSINESS] 2 sources
South Korea Tightens Crypto Oversight and Moves Ahead With Tokenized Bonds
South Korea tightens crypto regulation, referring manipulation cases to prosecutors while the Bank of Korea expands blockchain projects and plans tokenized government bonds.
about 1 month ago

[TECHNOLOGY] 2 sources
South Korea pushes broader crypto Travel Rule for small transfers
South Korea’s FIU urged the FATF to extend the Travel Rule to lower‑value crypto transfers, require both sending and receiving service providers to share data, and target offshore unregistered platforms.
about 1 month ago

[TECHNOLOGY] 2 sources
South Korea to Regulate Cross‑Border Crypto Transfers, Opening Market to Fintech Firms
South Korea will regulate cross‑border crypto transfers from Dec 2026, requiring registration and real‑time reporting, and opening the market to fintech firms alongside exchanges.

Sources

archynewsy.com · biz.heraldcorp.com · blocktempo.com · coinedition.com · cointelegraph.com · cryptobreaking.com · cryptopolitan.com · livebitcoinnews.com · news.heraldcorp.com · newsbit.nl · sateconomy.co.kr · tronweekly.com