FIU to Hear Crypto Industry Concerns on Revised Special Financial Act Rules May 13

South Korea’s Financial Intelligence Unit, which operates under the Financial Services Commission, will gather industry feedback as it reviews concerns over proposed revisions to the enforcement decree of the Special Financial Transactions Act.

Yonhap News reported on May 11 that the FIU plans to hold a meeting on May 13 at the Government Complex Seoul with the Digital Asset eXchange Alliance, or DAXA, and officials from cryptocurrency exchanges offering won trading to hear industry views on the proposal.

The meeting follows DAXA’s collection of opinions from locally registered virtual asset service providers, or VASPs, and its warning that the revised rules could disrupt the market if implemented.

The proposal includes provisions to strengthen anti-money laundering, or AML, controls. In particular, it would require suspicious transaction reports, or STRs, for all transactions of 10 million won ($7,250) or more, raising concerns over a heavier reporting burden.

Other key issues include expanded obligations to verify customer identification information and unclear risk assessment standards for overseas operators.

Industry participants say the measures could increase operational strain by driving up reporting volumes if they take effect as drafted. The FIU will review whether to revise the proposal based on views presented at the meeting.