Opening
Shim Won-tae, an official at South Korea's Financial Services Commission (FSC) Virtual Asset Division, stated on December 27 that a Foreign Exchange Transaction Act amendment creates the foundation for regulated digital asset market operations. Speaking at a policy forum on stablecoins held at the National Assembly Members' Hall in Yeouido, Seoul, Shim explained that the amendment—which passed cabinet review on December 26 and is scheduled for December implementation—establishes essential safeguards for cross-border digital asset transfers. The amendment represents a comprehensive regulatory approach designed to prevent illegal activities while enabling corporate participation in the digital asset market.
Foreign Exchange Transaction Act Amendment: Key Provisions
The Foreign Exchange Transaction Act amendment, approved by the cabinet on December 26, introduces mandatory reporting requirements for cross-border digital asset transfers. Beginning in December, all cross-border transfers of digital assets must be reported to the Ministry of Economy and Finance.
Virtual asset operators conducting digital asset transfer services are required to register with the Ministry of Economy and Finance. Transfer details are then reported to the Bank of Korea's foreign exchange system, creating a centralized reporting mechanism.
Data from these reports is shared across multiple regulatory agencies: the National Tax Service, Customs Service, Financial Supervisory Service, FSC, and the Financial Intelligence Unit (FIU). This multi-agency coordination enables monitoring for illegal foreign exchange transactions, money laundering, and other illicit activities.
According to Shim, this framework establishes "a meaningful institutionalization" for digital asset market operations, particularly for stablecoins that facilitate cross-border transfers and international payment functions.
Corporate Market Participation and Regulatory Framework
Shim indicated that the Foreign Exchange Transaction Act amendment provides the regulatory foundation for corporate market participation measures currently under preparation. These measures, developed through a private-public joint task force, are designed to improve market practices while maintaining regulatory oversight.
The amendment works in conjunction with existing regulations—specifically the Act on Reporting and Use of Specified Financial Transaction Information (Special Financial Information Act)—to prevent illegal use of digital assets by financial institutions.
Phase 2 Legislation and Implementation Timeline
Regarding Phase 2 legislation on stablecoins and digital asset issuance, Shim stated that the FSC will complete inter-agency coordination following the conclusion of important National Assembly schedules. Once coordination is finalized, the FSC will support rapid legislative discussion in the second half of the legislative calendar.
Shim noted that corporate market participation measures and financial institution equity investments are being prepared concurrently, with the goal of delivering market-observable improvements.
FAQ
Quand la législation de la phase 2 sera-t-elle introduite ?
D’après Shim, le calendrier de la législation de la phase 2 dépend de l’achèvement de calendriers importants de l’Assemblée nationale. Une fois la coordination inter-agences finalisée, le FSC vise à soutenir les discussions législatives au second semestre de l’année, avec pour objectif d’accélérer les progrès tout au long du processus législatif.
Quels garde-fous répondent aux préoccupations réglementaires concernant les marchés d’actifs numériques ?
La modification de la loi sur les opérations de change répond aux préoccupations réglementaires grâce à des obligations de déclaration des transferts transfrontaliers, à un partage des données entre plusieurs agences et à des exigences d’enregistrement pour les opérateurs d’actifs virtuels. Ces mesures permettent une surveillance coordonnée par les autorités fiscales, les douanes et les régulateurs financiers afin de détecter et de prévenir les activités illégales.
