Per Woofun AI, South Korea is advancing regulatory frameworks to integrate cross-border virtual asset transfers into the Foreign Exchange Transaction Act. The government is currently drafting implementation rules that will classify these activities as 'virtual asset transfer business,' requiring exchanges and fintech entities to register with the Office of the Minister of Economy and Finance.

This regulatory shift mandates that registered firms report transaction details through the Bank of Korea's foreign exchange computer network whenever cross-border transfers occur. Previously operating outside this oversight, the sector faced scrutiny regarding potential illicit foreign exchange trading and money laundering. The new system, targeted for implementation in December, seeks to establish a comprehensive management and regulatory structure for virtual asset remittances.