Starting December 3, cross-border crypto transfers must be reported transaction by transaction; South Korea's new rules affect over 1.27 million users

Odaily reports: South Korea's amended Foreign Exchange Transactions Act will take effect on December 3. According to the Bank of Korea's manual, domestic virtual asset service providers must report cross-border transfers in and out of crypto assets on a transaction-by-transaction basis by 11:00 AM on the next business day after the transaction is completed, including the transaction time, coin type and quantity, KRW-equivalent amount, fees, and information on both sender and recipient. Service providers must also submit a monthly balance report, FX1021, by 5:30 PM on the 10th of the following month, reporting each user's month-end holdings, KRW-equivalent balance, and total cross-border inflows and outflows for the month, covering dormant accounts, delisted coins, and staked assets; direct transfers between personal wallets are not within the reporting scope. The retroactive scope is based on users who have at least one cross-border transfer record since the Virtual Asset User Protection Act took effect on July 19, 2024, involving a total of 1,272,878 people across the five major exchanges. The Bank of Korea said the data will be shared with the National Tax Service, Korea Customs Service, Financial Supervisory Service, and Financial Intelligence Unit; the central bank is considering relaxing the retroactive starting point to December 3, with the final scope to be determined in November.