[REVISION HISTORY]

South Korea expands crypto oversight, STO roadmap and 2027 |

Updated 13 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-07 12:07 UTC → 2026-09-09 23:07 UTC · added ~~removed~~

South Korea expands crypto ~~oversight~~ oversight, STO roadmap and 2027 ~~tokenization~~ |

Since June 2026, South Korea has aggressively expanded its crypto-regulatory framework. The cabinet amended the Foreign Exchange Transactions Act, requiring overseas transfer firms to register with the Bank of Korea and report transactions in real-time. Regulatory oversight has intensified, with the Financial Intelligence Unit (FIU) moving to abolish the 1 million won threshold for the ‘Travel Rule,’ requiring sender and receiver information for all virtual asset transfers. New rules also strengthen the screening of major shareholders for digital asset service providers and require corporations to maintain a debt-to-equity ratio below 200%. To limit offshore liquidity flows, authorities are implementing stricter transfer ~~restrictions. These include~~ restrictions, including requiring exchanges to collect detailed user ~~information, such as the origin of funds~~ information and ~~purpose of transfer, while~~ enhanced monitoring for transfers exceeding 10 million ~~won to overseas accounts or self-hosted wallets will face enhanced monitoring.~~ won. Additionally, access to several unregistered derivative ~~platforms, including Bybit, MEXC, and HTX,~~ platforms is being restricted on the local Google Play ~~Store by removing automated update capabilities.~~ Store. To combat unfair trading, the Financial Supervisory Service (FSS) has launched an automated surveillance process using generative AI and machine ~~learning to detect manipulation tactics like ‘racehorse’ and ‘cage’ schemes.~~ learning. In September 2026, the Financial Services Commission (FSC) detailed a three-stage roadmap to expand security token offerings (STO) ~~beyond fractional investments~~ to include traditional stocks, bonds, and funds. This transition, tied to amendments to the Electronic Registration Act, will begin with institutional-only products like private money market funds (MMF), corporate bonds, and unlisted ~~stocks. Subsequent phases aim to include all publicly offered securities and~~ stocks, eventually ~~establish~~ aiming for an on-chain payment infrastructure using ~~stablecoins~~ stablecoins. Furthermore, South Korea is preparing to implement taxation on digital asset transfer and lending income starting January 1, 2027. Earnings will be classified as ‘other income,’ subject to a 22% combined tax rate after a 2.5 million won annual deduction. This classification has raised concerns regarding the accuracy of tracking overseas transactions and the potential impact on health insurance premiums for ~~securities settlement.~~ high-earning individuals and dependents.

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