South Korea mandates registration for cross-border crypto transfers and locks in 22% capital gains tax from 2027!

South Korea's National Assembly passed an amendment to the Foreign Exchange Transactions Act on Friday, requiring any entity that transfers crypto assets to or from overseas as a business to register with the Minister of Economy and Finance. The law introduces a formal definition of "virtual asset transfer business," covering exchanges and digital asset custody firms, and gives authorities a systematic framework to monitor cross-border crypto flows.

The Financial Services Commission is simultaneously expanding Travel Rule requirements to cover all crypto transactions, removing the current 1 million won ($681) threshold. Industry players have pushed back, warning that blanket data collection on every transfer could slow execution in volatile markets and generate meaningful revenue losses.

On the tax front, South Korea's authorities confirmed a 22% levy on crypto gains above 2.5 million…