South Korea Considers Allowing Exchanges and Fintech Firms to Join Virtual Asset Overseas Remittance System

South Korea is considering allowing entities such as exchanges and fintech companies to participate in an upcoming virtual asset overseas remittance business system, which is expected to be implemented in December this year. According to Odaily, people familiar with the matter said the government has recently begun drafting detailed enforcement rules for a partial amendment to the Foreign Exchange Transactions Act and is reviewing registration requirements for virtual asset transfer services. The core of the amendment would bring cross-border virtual asset transfers under the regulatory framework of the Foreign Exchange Transactions Act and define them as a “virtual asset transfer business.” Companies seeking to conduct virtual asset transfer services would be required to register with the office of South Korea’s Minister of Economy and Finance. When cross-border transfer transactions occur, they would also need to report relevant information through the Bank of Korea’s foreign exchange computer network.