Finance Ministry seeks stricter crypto regulation to curb illegal activity

Korea aims to tighten surveillance on cross-border cryptocurrency transactions in line with efforts to curb illegal activities, the Ministry of Finance and Economy said Tuesday.

Under revisions to the Foreign Exchange Transactions Act approved during a Cabinet meeting, cryptocurrency platform operators engaged in cross-border transfer services will be required to register with the Ministry of Finance and Economy.

“Amid growing cross-border trading of virtual assets, illegal transactions aimed at evading foreign exchange regulations are also increasing,” the ministry said.

“The revision aims to reflect changes in the cross-border trading environment and bolster the soundness of the foreign exchange market,” it added.

The new regulation also requires cryptocurrency platform operators to report cross-border trading activities to the Bank of Korea, with the information to be shared with related agencies, including the tax and customs authorities.

The Finance Ministry said it will continue working with relevant agencies to monitor cross-border virtual asset trading.

Yonhap