South Korea tightens rules for crypto transfers to foreign exchanges

South Korea is tightening the reins when it comes to crypto transfers to foreign platforms. The tightening follows the disappearance of the apps of Bybit, MEXC and HTX from the local Google Play Store. Users who want to send large amounts to foreign exchanges or their own wallets will now face additional checks.

In short:

• The apps of Bybit, MEXC and HTX have been removed from the South Korean Google Play Store.
• Exchanges may now request supporting documents before a transfer is processed.
• Transfers of 10 million won ($7.000) or more abroad fall under heightened scrutiny for suspicious transactions.

Apps disappear from the Play Store

The removal of the apps of Bybit, MEXC and HTX from the South Korean Google Play Store is the direct reason for the new measures, reports News1. The South Korean authorities appear to be sending a clear signal to foreign platforms operating in the country without complying with local rules. The country has long struggled with regulating foreign crypto exchanges that offer services to South Korean users.

The step fits a broader international trend in which countries are increasingly taking action against unregistered foreign platforms. Earlier, Russia also took steps to restrict access to and use of crypto through national legislation.

Stricter requirements for transfers

Under the revised rules, exchanges can require users to provide proof of account ownership, the purpose of the transaction and the origin of the funds. Those who provide insufficient information risk a transfer being delayed or refused. The new rules apply both to transfers to foreign exchanges and to so-called self-hosted wallets, where users keep control of their own crypto.

Specifically for transactions of 10 million won or more, approximately $7.000, a stricter supervisory regime applies for suspicious transactions. Exchanges are obliged to closely monitor such transfers and, if necessary, report them to the authorities. The measure clearly has consequences for liquidity on foreign platforms, at a time when trading volume on exchanges worldwide is already under pressure.