South Korea drafts rules to report cross-border crypto transfers to its central bank, starting December 3

South Korea is preparing to track crypto that leaves or enters the country the way it tracks foreign currency. The Ministry of Economy and Finance has opened public comment on a draft enforcement decree under the Foreign Exchange Transactions Act that sets up a new category of business, cross-border virtual asset transfers, Korea's Financial News reported.

The rules would cover transfers between domestic and overseas crypto businesses, and between domestic businesses and personal wallets. Companies doing this work would have to register in advance with the government, run the computer systems the business needs and employ at least two qualified staff with at least two years of foreign exchange experience or relevant training, DigitalToday reported.

Registered firms would report transfer details to the Bank of Korea's foreign exchange computer network. The central bank would share that data with the National Tax Service, the Korea Customs Service, the Financial Supervisory Service and the Financial Intelligence Unit.

The draft also toughens the line on money changers: one breach tied to voice phishing, illegal trade payments or unlicensed crypto remittances could cost them their registration, Bloomingbit reported. Comments close on October 26. After regulatory and legal reviews and cabinet approval, the government plans to apply the decree from December 3.