South Korea to Implement FX Controls on Crypto Transfers by December 2026
- Starting December 2026, South Korea will enforce foreign exchange controls on cross-border crypto transfers.
- The revised Foreign Exchange Transactions Act was enacted on June 2 and includes a six-month grace period.
- Companies must register with the Minister of Finance and Economy and report transaction data via the Bank of Korea’s network.
- To register, firms need VASP registration, connection to the forex network through an approved intermediary, and compliance with staffing requirements.
- Major exchanges like Upbit are expected to be among the first to qualify under this new framework.
This regulatory change aims to address vulnerabilities in the crypto sector related to illegal capital flows and money laundering. As South Korea prepares for these FX controls, it reflects a global trend towards stricter oversight in cryptocurrency markets.
With these new rules set to take effect in December, South Korea’s move is significant for major exchanges like Upbit, which is actively expanding its offerings. (Source)
