South Korea will cancel the mandatory reporting of cryptocurrency transfers exceeding 10 million won, instead leaving risk management to the exchanges themselves.

ME News message: On June 5 (UTC+8), the Financial Intelligence Unit (FIU) of South Korea revised the draft amendment to the Enforcement Decree of the Act on Reporting and Using Certain Financial Transaction Information. The amendment removes the mandatory reporting obligation for virtual asset transfers of more than 10 million Korean Won, and instead requires risk management to be handled by exchanges themselves. The original proposal required operators within South Korea, when transferring more than 10 million Korean Won to overseas jurisdictions, to report to the FIU regardless of the level of risk. After adopting industry feedback, the FIU decided to abolish the mandatory reporting requirement and instead have each company establish an internal risk management system.

Other adjustments include: the scope of the Travel Rule will be expanded from transactions over 1 million Korean Won to all amounts; enhanced customer authentication for high-risk suspicious transactions will change from mandatory to being carried out only when a company determines the risk to be particularly high; entities with a debt ratio not exceeding 200% will be granted a one-year grace period for the reporting conditions for small businesses; and the requirement that anti-money laundering computer equipment must be located domestically will allow the use of overseas cloud services.

After review by the Legal Affairs Office, the amendment will take effect on August 20. (Source: PANews)