South Korea Tightens Regulation on Overseas Cryptocurrency Transfers: Introduces Enhanced Identity and Purpose Verification

August 13th. After South Korea delisted Bybit, OKX, and other overseas CEX apps from the local Google Play store, it is further tightening the process of transferring crypto assets to overseas platforms.

According to the latest amendment to the Enforcement Decree of the Special Financial Information Law, South Korean exchanges will now need to determine whether to allow transfers based on the risk level of the overseas platform; when transferring to certain overseas exchanges or individual wallets, users may be required to prove ownership of the account, explain the purpose of the transaction, and disclose the source of funds. If the information is insufficient, the transfer may be delayed or rejected. Transactions of 10 million KRW or more in a single transaction will also be included in the exchanges' in-house suspicious transaction monitoring system. These regulations will be implemented six months after publication. (News 1)