The Bank of Korea will, from December 2, require the reporting of month-end balances of users who have transferred crypto assets across borders
BIBIBI
AT A GLANCE
The Bank of Korea said it will require service providers to report monthly the month-end holdings and flow data of cross-border crypto users.
Article
【The Bank of Korea will require reporting of month-end holdings of cross-border crypto users from December 2】
The Bank of Korea will require virtual asset transfer service providers, from December 2 onward, to report monthly to the foreign exchange information system the month-end holdings of users who have made cross-border crypto-asset transfers to overseas exchanges, personal wallets, and other destinations since July 19, 2024. Reporting will be required even if there were no cross-border transactions during the month. Reports will cover the number of tokens held, the KRW-converted balance, and the total cross-border inflows and outflows during the month. Dormant accounts, delisted assets, and staked assets are also included in scope, and must be submitted by 10 of the following month, 17: 30. Whether records of cross-border transfer transactions made before implementation of the system must be submitted retrospectively has not yet been determined.
Key points
01
The Bank of Korea will require virtual asset transfer service providers, from December 2 onward, to report the month-end holdings of relevant users monthly.
02
Reportable users include those who have made cross-border crypto-asset transfers to overseas exchanges, personal wallets, and other destinations since July 19, 2024.
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Reporting is required even if there were no cross-border transactions during the month.
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Reports will include the number of tokens held, the KRW-converted balance, and the total cross-border inflows and outflows during the month.
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Dormant accounts, delisted assets, and staked assets are also within the scope of reporting.
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Reports must be submitted by the 10 day 17: 30 of the following month.
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Whether records of cross-border transfer transactions made before implementation of the system must be submitted retrospectively has not yet been determined.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Simply put, the Bank of Korea plans to require relevant service providers to report periodically on the crypto-asset balances and cross-border flows of certain users, even when there are no cross-border transfers during the month.
Why it matters to readers
This will expand the scope of data that relevant service providers need to compile and submit; however, the materials do not indicate that the requirement will directly restrict cross-border asset transfers.
Beginners should focus on which users must be reported, which balance and flow data must be reported, and whether transactions made before implementation of the system must be submitted retrospectively.
Risks and unknowns
The materials do not provide the original announcement from the Bank of Korea or South Korean regulators.
Whether records of cross-border transfer transactions made before implementation of the system must be submitted retrospectively has not yet been determined.
The specific reporting process and practical enforcement standards have not yet been clarified.
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Related concepts
Month-end holdings
This term is not in the glossary yet. Browse related concepts in the glossary.
