The South Korean government wants to amend its Foreign Exchange Transactions Act. The amendment would require virtual assets service providers (VASPs) involved in cross-border transactions to register under the new Act and submit monthly reports of individual users’ transaction details to the Bank of Korea.
According to reports, Choi Eun-Seok, a member of the National Assembly from the People Power Party (PPP), sponsored the amendment bill, citing the need to combat crypto-related money laundering and foreign exchange crimes in the country. Choi’s proposal centers on creating a system to monitor crypto transactions.
Meanwhile, the lawmaker believes the rise of illegal transactions and money laundering in South Korea stems from the lack of monitoring. He thinks proper regulation and oversight on crypto and FinTech-based service providers will enable the Korean government to curtail the growing danger.
Read also : Virtual Currency Tracking System: South Korea’s Crypto Regulation
Last October, the Korean Minister of Economy and Finance Choi Sang-mok stated that amendments like the one proposed by the lawmaker will undergo consultations and legislative review. According to the Minister, an ideal target for implementing the proposed Act would be in 2025 after getting legislative approval.
In the meantime, the Korean Financial Intelligence Unit (FIU) recently reported a sharp increase in suspicious transactions. According to the FIU, such transactions increased by 48.8% last year compared to the previous year. The development prompted the Ministry of Economy and Finance’s decision to add new definitions to virtual assets and their merchants before the amendment’s implementation.
The proposed amendment highlights South Korea’s move toward a more regulated crypto industry. The region is renowned for its efforts to enable an organized and well-monitored cryptocurrency ecosystem, with a focus on balanced regulation without stifling innovation.
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