South Korea tightens crypto rules, eyes fintech entry

South Korea will expand crypto exchange shareholder reviews and may let fintech firms get licenses for cross-border crypto transfers, tightening oversight and broadening market access.

South Korea is advancing significant regulatory changes in the digital asset sector. The Financial Services Commission will expand shareholder review requirements for crypto exchanges under the new Digital Asset Basic Act. Starting August 20, major shareholders and influential parties will be subject to these reviews. The government is also updating cross-border crypto transfer regulations. Following cabinet approval on June 2, new rules will take effect in December after a six-month transition period. Amendments to the Foreign Exchange Transactions Act will require companies handling international digital asset transfers to register with the Ministry of Economy and Finance and report transactions to the Bank of Korea. Authorities are considering allowing fintech companies, alongside crypto exchanges, to obtain licenses for cross-border crypto transfers. These measures aim to close regulatory loopholes, strengthen anti-money laundering efforts, and broaden participation in the digital asset market.