South Korea Sets December Deadline for Cross-Border Crypto Reporting

The Ministry of Finance and Economy’s proposal brings virtual asset service providers under a formal monitoring umbrella. This oversight extends beyond exchange-to-exchange transactions, explicitly capturing transfers between domestic platforms and private, unhosted wallets. To comply, operators must integrate their internal systems with the Bank of Korea’s information network and maintain dedicated staff with at least two years of relevant experience in foreign exchange operations.

Despite widespread speculation on social media, the government has not designated stablecoins like USDT or USDC as official payment instruments. While these assets will fall under the new reporting framework when moved across borders, the ministry’s decree focuses on oversight rather than legal reclassification. Exchanges such as Upbit and Bithumb, along with other firms providing custody or brokerage services, face a rigorous implementation phase before the rules go live. Violators risk severe penalties, including license cancellation and administrative surcharges reaching 100% of illicit profits.