South Korea Considers Expanding Crypto Remittance Licenses

The government is currently drafting enforcement regulations for amendments to the Foreign Exchange Transactions Act, which passed on June 2 and is scheduled to take effect in December. Under these rules, companies offering blockchain-based remittances must register with the Ministry of Economy and Finance and report transactions through the Bank of Korea’s reporting network. By incorporating these transfers into the existing financial system, officials intend to curb illicit activity and money laundering risks that have historically persisted outside of regulatory sightlines.

Industry participants previously assumed that only major exchanges like Upbit and Bithumb would qualify for the new licenses, given that existing Virtual Asset Service Provider (VASP) rules are restrictive. However, a Bank of Korea official recently indicated that the government does not necessarily intend to limit participation to existing VASPs. This shift has drawn interest from fintech firms that have long struggled to enter the crypto market due to stringent registration requirements and the difficulty of securing real-name banking partnerships. As the Ministry and the Bank of Korea finalize the decree, they continue to consult with industry players to define the technical and professional personnel standards required for registration.