South Korea's cryptocurrency industry collectively opposes the new anti-money laundering regulations, which propose that all overseas transfers exceeding 10 million won be reported as suspicious transactions.

ME News Report, May 4th (UTC+8), South Korea’s DAXA organization representing 27 registered virtual asset service providers (VASPs) expressed opposition to the proposed amendments to the “Specific Financial Information Act” by the Korea Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU). The new regulation requires that when domestic VASPs transfer virtual assets to overseas VASPs, transactions of 10 million Korean won (approximately $6,800) or more, regardless of risk level, must be reported as suspicious transaction reports (STR). DAXA warned that this could increase the annual reporting volume of South Korea’s five major trading platforms from about 63k to over 5.4 million, making compliance nearly impossible. The industry also opposes the proposed requirement to verify the accuracy of customer information, arguing that it imposes undefined legal obligations. Currently, this opposition comes amid a legal standoff with financial regulators. The public consultation period ends as the final decision on the new regulation is expected in July, highlighting the tension between increased regulation and industry burden. (Source: MLion)