South Korea's National Assembly Passes Foreign Exchange Law Amendment, Bringing Crypto Cross-Border Transfers Under Regulatory Oversight on May 8

According to ChainCatcher, South Korea’s National Assembly passed amendments to the Foreign Exchange Transaction Act on May 8, requiring virtual asset cross-border transfer businesses to register with the Ministry of Finance and Economics. Stablecoins and other virtual assets transferring between South Korea and foreign countries are now subject to foreign exchange authority oversight. Cryptocurrency exchanges and custodial institutions must also register under the new framework.

Penalties for violations have been strengthened, with fines increased from 50 million won to up to 1 billion won or up to one year imprisonment for cross-border asset transfer violations conducted with intent to gain improper benefits.