[Customs FAQ] Could there be issues if trade payments are received in virtual assets like Bitcoin or Ethereum? Released

The following is the guidance from the Korea Customs Service regarding the payment and receipt of trade payments using virtual assets.

According to Article 16, Clause 4 of the Foreign Exchange Transactions Act and Article 5-11, Clause 3 of the Foreign Exchange Transactions Regulations, if a resident makes or receives payments without going through a foreign exchange bank (including cases where claims and debts with non-residents are settled through the provision of goods or services, transfer of rights, etc.), they must report the method of payment to the Governor of the Bank of Korea.

Therefore, the act of receiving trade payments in virtual assets itself is not illegal, but if trade payments are received in virtual assets without reporting the method of payment to the Bank of Korea, it may be punished as a violation of Article 16, Clause 4 of the Foreign Exchange Transactions Act.