South Korea is preparing to expand its oversight of cryptocurrency transactions, with the Bank of Korea set to require domestic crypto exchanges to report the monthly holdings of users who have transferred digital assets overseas. The new framework will extend monitoring beyond individual transfers, giving the central bank greater visibility into the crypto assets retained by users with a history of international transactions.
Under the planned reporting system, exchanges will be required to submit monthly information on eligible users’ crypto balances, their value in South Korean won, and the total value of cross-border digital asset inflows and outflows. The reporting requirements are scheduled to begin in December, although the final scope of the rules remains under review.
One of the most significant aspects of the framework is that users could remain subject to reporting even when they make no overseas transfers during a particular month. If they have previously transferred crypto to an overseas exchange or personal wallet and continue to hold reportable assets, their domestic exchange balances could still be included in monthly submissions.
The reporting rules are also broader than simply tracking actively traded cryptocurrencies. Exchanges must account for assets held in dormant accounts, delisted tokens, and cryptocurrencies committed to staking. Balances are calculated at the end of each calendar month, with reports due by 5:30 p.m. on the 10th of the following month. If an exchange cannot determine the value of a particular token, the reporting manual allows prices from other domestic exchanges or CoinMarketCap to be used.
The central bank has identified July 19, 2024, as the starting point for determining which users have a qualifying history of international crypto transfers. This is the date South Korea’s Virtual Asset User Protection Act took effect. Under the initial approach, even a single qualifying transfer since that date could bring a user within the reporting framework.
However, the Bank of Korea has not yet finalized whether exchanges must provide historical records covering the period from July 2024 until the new system begins. Authorities are consulting with service providers, and the reporting scope could be narrowed to reduce the technical and administrative burden on exchanges. The final requirements are expected to be determined after further consultations.
The changes form part of South Korea’s broader effort to strengthen oversight of cross-border digital asset movements and close potential gaps in foreign exchange monitoring. The revised framework is designed to capture transfers involving overseas exchanges and personal wallets, with transaction information submitted through the central bank’s foreign exchange information network. The system will also enable relevant authorities to monitor international crypto movements more systematically.
The policy could have significant implications for crypto users who regularly move assets between domestic exchanges, overseas platforms, and self-custody wallets. While the new requirements primarily place reporting obligations on service providers, the expanded collection of transaction and balance information raises questions about data privacy, regulatory oversight, and how broadly the rules will ultimately apply.
The central issue is whether South Korea will retain the initial approach of monitoring the domestic holdings of anyone with a qualifying overseas transfer history, or adopt a narrower framework focused on more recent or specific transactions. Until the final rules are confirmed, the full scope of the reporting system and whether historical records will be required—remains uncertain.
