Bank of Korea to track crypto holdings of users with overseas transfers

South Korea’s central bank has introduced new reporting requirements that will require domestic crypto exchanges to disclose the monthly holdings of users who have previously transferred digital assets overseas.

According to an October 23 report by local media outlet Digital Asset, the Bank of Korea has prepared a new reporting framework that will take effect on December 2 and cover users who have transferred cryptocurrencies to overseas exchanges or personal wallets at least once since July 19, 2024.

The details were outlined in a reporting manual obtained by People Power Party lawmaker Park Soo-young. The document, titled the Foreign Exchange Information Network Reporting Manual for Virtual Asset Transfer Service Providers, introduces a new monthly report known as FX1021.

Once the system takes effect, exchanges and other covered service providers will have to report the month-end holdings of qualifying users, even when they have not made any international transfers during the reporting month.

The reporting requirement will remain in place even during months when affected users make no international transfers, provided they continue to hold reportable assets.

Bank of Korea sets monthly crypto reporting requirements

The new reporting system will require service providers to submit information about the amount of cryptocurrency held by each qualifying user, the Korean won value of those holdings, and the total value of digital assets transferred into and out of South Korea during the month.

According to the manual cited by Digital Asset, balances must be calculated at 11:59:59 p.m. on the final calendar day of each month, regardless of whether the date falls on a business day.

Exchanges will have until 5:30 p.m. on the 10th of the following month to submit their reports through the Bank of Korea’s foreign exchange information network.

The reporting requirements will cover more than cryptocurrencies currently available for trading on domestic exchanges.

Service providers must account for assets held in dormant accounts, cryptocurrencies that have been delisted, and digital assets committed to staking arrangements.

Where a domestic exchange cannot determine the price of an asset, including certain airdropped or delisted tokens, the manual allows valuations based on prices from other Korean exchanges or CoinMarketCap.

The manual addresses accounts that no longer hold any cryptocurrency. Users who close their exchange accounts or have zero balances during a reporting month must still be included in that month’s submission.

They will be excluded from subsequent reports unless a balance reappears, at which point reporting will resume.

Historical crypto transfers remain subject to review

The central bank has selected July 19, 2024, as the starting date for identifying users with qualifying international crypto transfer histories.

The date coincides with the implementation of South Korea’s Virtual Asset User Protection Act, which established investor protection requirements for domestic cryptocurrency service providers.

However, the Bank of Korea has not yet decided whether exchanges will have to submit historical transaction records covering the period between July 19, 2024, and the December reporting launch.

According to the manual, the central bank intends to consult virtual asset transfer service providers before deciding whether to request those records retrospectively.

South Korea has tightened oversight of overseas crypto transfers

The reporting requirements form part of South Korea’s ongoing changes to its foreign exchange rules for digital assets.

In May, South Korean lawmakers approved amendments to foreign exchange legislation that introduced registration requirements for businesses handling international cryptocurrency transfers. The amendments established a separate legal category for virtual asset transfer service providers.

Authorities subsequently began reviewing licensing requirements for fintech firms interested in providing international digital asset transfer services.

The proposed framework was expected to cover eligible businesses beyond cryptocurrency exchanges, including firms developing blockchain-based remittance and foreign exchange products.

South Korea approved tighter overseas crypto transfer controls in August, introducing risk-based checks for transactions involving foreign exchanges and self-hosted wallets.

As crypto.news previously reported, the changes included additional monitoring requirements for transfers worth at least 10 million won and allowed restrictions on transactions involving high-risk overseas counterparties.

The amendments separately removed the previous 1 million won Travel Rule threshold for transfers between registered domestic virtual asset service providers, requiring identifying information regardless of transaction size.

The growing volume of international cryptocurrency transactions has been another focus for Korean authorities.

Data reported in June showed that crypto remittances through major exchanges had risen 380% since 2022, reaching 163.55 trillion won in 2025.

Over the same period, international transfers through South Korea’s five largest banks grew 20%, reaching approximately 1,590 trillion won last year.