The government will build a monitoring system to examine cross-border inflows and outflows of virtual assets.
On the 26th, the government approved a proclamation bill to partially amend the Foreign Exchange Transactions Act. Under this, virtual asset service providers must pre-register with the government and report records of cross-border virtual asset transfer to the Bank of Korea's foreign exchange network. If they violate registration requirements or refuse to comply with reporting or inspection, sanctions comparable to those imposed on existing foreign exchange-handling institutions will be applied.
As transactions such as overseas remittances and transfer of virtual assets increase, there has been a rise in attempts to circumvent foreign exchange regulations or engage in illegal transactions using them. The government said this amendment was prepared to reflect these environmental changes and to secure the soundness of foreign exchange transactions.
The bill partially amending the Foreign Exchange Transactions Act, approved at the Cabinet meeting, is scheduled to be promulgated on Jul. 2 and to take effect six months from the promulgation date.