South Korea tightens foreign exchange decree on crypto transfers and payments

South Korea’s Ministry of Economy and Finance has proposed an amendment to the Enforcement Decree of the Foreign Exchange Transactions Act that would define virtual-asset transfer businesses and merge six payment sectors into a single overseas payment licence. The draft was published for public comment on 7 October 2026 in the Official Gazette (관보 제21335호) under notice 재정경제부공고 제2026-259호, with opinions due by 26 October 2026.

The legislative notice was issued by the Deputy Prime Minister and Minister of Economy and Finance under Article 41 of the Administrative Procedures Act. According to the notice, the amendment seeks to establish the legal basis for definitions and for registration and reporting systems covering electronic cross-border transactions and payment or receipt services, to reorganize the registration system for currency exchange operators, and to adjust the Korea Customs Service’s inspection authority over foreign exchange transactions, so as to minimise blind spots in illegal foreign exchange dealing.

It also implements recent amendments to the Foreign Exchange Transactions Act, including the objection procedure for the foreign exchange soundness levy and the setting of a sunset period. The full text is posted on the ministry’s website under “Legislation → Legislative Notice”.

Virtual asset transfers brought under registration

The draft adds a new Article 9-3 defining virtual-asset transfer business as the transfer of virtual assets between South Korea and foreign countries through custody, management, brokerage or arranging, including transfers between domestic virtual asset businesses and personal wallets.

• New Articles 17-5 and 17-6 set out registration application items, facility and professional staffing requirements, registration procedures, and the items and deadlines for reporting changes.
• Inspection authority is delegated to the Financial Supervisory Service, with data notification to related agencies and sanction powers assigned to the Financial Services Commission (Articles 35 to 37).
• Articles 39 and 39-2 create the basis for a virtual-asset transfer data analysis body and for processing data including resident registration numbers.
• Detailed criteria are set for revoking registration or licences and suspending business for registration violations, and for fines for failures to report changes or closure (Annex 2 and Annex 4).

Six payment sectors merged into one overseas payment licence

A new Article 15-2 consolidates six foreign exchange business categories into a single “overseas payment settlement business”:

• small-amount overseas remittance business;
• electronic payment settlement agency business;
• electronic money business;
• prepaid business;
• electronic payment funds escrow business;
• electronic billing settlement business.

The draft also sets registration and change-of-registration rules, personnel and physical requirements, concurrent business provisions and conduct standards (Articles 15-3, 15-4, 16 and 17), and revises the calculation, payment and return of performance deposits and prudential regulation terminology (Articles 17-2 and 21). Inspection is delegated to the Financial Supervisory Service and supervision and sanctions to the Financial Services Commission (Articles 35 and 37).

Customs inspection and currency exchange rules

• Currency exchange operators would face personnel and physical registration requirements set at a level similar to comparable business types (Article 15).
• The Korea Customs Service would be able to inspect foreign exchange transactions identified in the course of import and export inspections (Article 35).
• Criteria would be introduced for revoking registration or licences for violations of professional foreign exchange business registration provisions (Annex 2).
• Surcharges imposed in lieu of business suspension would be raised (Annex 3).

Other changes and the comment deadline

The draft deletes a provision so that “expenses necessary to maintain an office” are no longer excluded from the definition of capital transactions (Article 9), and removes enforcement decree provisions on objection and result-notification periods for the foreign exchange soundness levy now covered by statute (Article 21-10). A new Article 21-12 would set the levy’s sunset period at 10 years within the statutory limit.

Comments must reach the ministry by 26 October 2026:

• By post: Foreign Exchange System Division, Ministry of Economy and Finance, Government Complex Sejong, 42 Doum 6-ro, Sejong 30112;
• By email: sung126126@korea.kr;
• By fax: 044-215-8136;
• Enquiries: 044-215-4753.

The proposal would redraw the regulatory perimeter for crypto transfer providers and cross-border payment firms in South Korea, subjecting both to registration, staffing and inspection requirements and giving the Financial Services Commission and the Financial Supervisory Service explicit supervisory and sanctioning powers. Operators have until 26 October 2026 to file comments before the decree is finalised.

Source: 관보 (Official Gazette of the Republic of Korea), 제21335호, 7 October 2026, Notices (공고), p. 207 (official reference: 재정경제부공고 제2026-259호).