UAESouth Korea virtual asset transfer rules: transitional deadline for existing remittance and money exchange businesses
Certain existing remittance and money exchange businesses in South Korea have until June 30, 2027 to meet new requirements under the amended Foreign Exchange Transactions Act, which brings cross-border crypto transfers into a formal registration and reporting system. The deadline is a transitional arrangement that runs alongside the main rules, which are scheduled to take effect on December 3, 2026.
What is happening
South Korea's National Assembly passed amendments to the Foreign Exchange Transactions Act on May 7, and they were promulgated on June 2. The law creates a new category of registered virtual asset transfer businesses covering services that move cryptocurrencies between South Korea and overseas markets. According to the Ministry of Finance and Economy's October 7 legislative notice, the draft enforcement decree also covers transfers between exchanges and private, unhosted wallets, because authorities consider them capable of producing similar cross-border effects. Public comments on the draft closed on October 26.
Operators that qualify must register with the finance ministry, connect their systems to the Bank of Korea's foreign exchange information network and keep records of relevant transfers. The draft requires suitable computer systems and at least two qualified employees at each business office, with two years of foreign exchange experience or completion of government-approved training. No separate minimum equity capital requirement is included.
The main provisions are expected to take effect on December 3, 2026, after regulatory and legislative reviews and Cabinet consideration. Separate transitional arrangements give certain existing remittance and money exchange businesses until June 30, 2027 to comply. The sources do not specify which businesses qualify for this extra time.
Why it matters
For companies, the deadline marks the end of the grace period to build reporting systems, hire or train qualified staff and complete registration. Exchanges such as Upbit and Bithumb could face new obligations if their activities meet the definition of a virtual asset transfer business. Transaction data submitted to the Bank of Korea could be shared with several agencies, including the National Tax Service and the Korea Financial Intelligence Unit.
For holders and traders, the changes mainly affect how cross-border transfers are monitored, not what can be traded. Social media claims that the rules make USDT or USDC official payment instruments are not supported by the ministry's announcement, which describes a registration and reporting framework only. The government has not announced USDT trading restrictions, a new tax on stablecoin transfers or limits on exchange premiums under this decree.
Key details
- Date: June 30, 2027 (transitional deadline); main rules expected December 3, 2026
- Project: South Korea Ministry of Finance and Economy
- Coins: None specified
- Category: Regulatory Deadline
- Status: Confirmed
- Source: crypto.news (https://crypto.news/south-korea-crypto-transfer-rules-december-2026/)