South Korea will require crypto businesses handling cross-border transfers to register with the Ministry of Economy and Finance (MOEF) and report transactions to the central bank's foreign exchange network, under an amendment approved by the cabinet on Tuesday.
South Korea Tightens Forex Rules, Mandates Crypto Cross-Border Reporting
26 May 2026 - 11:27 CEST
By Oihyun Kim
The revised Foreign Exchange Transactions Act will be promulgated on 2 Jun and take effect in early December.
The amendment targets a regulatory gap exposed by the rapid inflow of dollar stablecoins into South Korea, one of the world's most active retail crypto markets. Tether's USDT and Circle's USDC are increasingly entering the country through exchange trading pairs and private wallets, bypassing traditional forex controls.
Crypto businesses must register with the ministry in advance and report transfer details.
The rules apply to service providers rather than individual users, and penalties for non-compliance will match those imposed on existing foreign exchange handlers.
