South Korean cryptocurrency cross-border regulation

In September 2026, Park Chang-beom, Chairman of Korea Digital Asset Evaluation & Certification (KODEAC), proposed a regulated system to allow South Korean investors to access overseas cryptocurrency exchanges through domestic registered platforms. This proposed ‘cross-border order brokerage and custody’ model would use domestic exchanges as infrastructure providers to handle customer verification, anti-money laundering monitoring, and complaint management.

Following this proposal, South Korea’s Ministry of Economy and Finance announced an amendment to the Enforcement Decree of the Foreign Exchange Transactions Act, scheduled to take effect on December 3, 2026. The amendment aims to regulate cross-border virtual asset transfers, including those between domestic and overseas exchanges or private, unhosted wallets. Registered service providers must report transaction details to the Bank of Korea’s foreign exchange information network, with data shared among the National Tax Service, Korea Customs Service, Financial Supervisory Service, and the Korea Financial Intelligence Unit to monitor for illegal transactions and unauthorized remittances.

New requirements for service providers include the necessity of specialized IT facilities and professional staff with at least two years of foreign exchange experience. The reform also reorganizes fintech-based foreign exchange services into a unified ‘overseas payment and settlement business’ category. Additionally, the Bank of Korea plans to require monthly filings detailing digital-asset quantities and month-end values in Korean won for qualifying transfers. While the framework aims to increase oversight of stablecoins and mitigate risks from cryptocurrency mixers, official announcements focus on registration and reporting rather than a formal reclassification of assets like USDT or USDC as legal tender.