South Korea to Eliminate Mandatory Reporting for Crypto Transfers Over 10 Million KRW

Huo Xing Finance reports, according to South Korea’s SBS News, the Financial Intelligence Unit (FIU) of South Korea has revised the enforcement decree of the Specific Financial Information Act, eliminating the mandatory reporting requirement for virtual asset transfers exceeding 10 million KRW and instead entrusting risk management to exchanges themselves. The original proposal required domestic operators to report all transfers of 10 million KRW or more to foreign entities to the FIU, regardless of risk level. After incorporating industry feedback, the FIU decided to remove the mandatory reporting obligation and instead require each company to establish its own internal risk management system. Other adjustments include: expanding the scope of the Travel Rule from transfers above 1 million KRW to all transaction amounts; changing mandatory enhanced customer due diligence for high-risk suspicious transactions to be triggered only when a company determines the risk to be particularly high; granting small businesses a one-year grace period to comply with the debt-to-equity ratio requirement of no more than 200%; and permitting the use of overseas cloud services for anti-money laundering computer systems, rather than requiring them to be located domestically. The revised decree will take effect on August 20 after review by the Ministry of Justice.