The South Korean Government Considers Easing the Threshold for Cross-Border Virtual Asset Transfers

June 19 — According to South Korean media outlet SBS, as South Korea’s virtual asset overseas transfer system is set to roll out this December, the government is considering expanding participation in the initiative to include financial technology (FinTech) firms beyond cryptocurrency exchanges. Industry insiders anticipate this move will formally open South Korea’s virtual asset-based cross-border remittance and foreign exchange market. Relevant government departments and industry stakeholders have confirmed that Seoul has recently begun drafting the enforcement decree for the revised *Foreign Exchange Transaction Act*, and is reviewing registration requirements for virtual asset transfer services. The partial amendment to the act was greenlit at a State Council meeting on the 2nd of this month, with a six-month transition period, and will take effect officially in December. The core of the legislation is to bring cross-border virtual asset transfers under the regulatory framework of the *Foreign Exchange Transaction Act*, establishing a new regulated category named "Virtual Asset Transfer Service". Companies operating in this space must register with South Korea’s Minister of Economy and Finance, and submit relevant transaction data via the Bank of Korea’s foreign exchange information system.