FIU to Hold Further Talks With Crypto Exchanges This Month on Special Financial Act Decree

South Korea’s Financial Intelligence Unit will hold additional talks this month with the country’s major virtual-asset exchanges on proposed revisions to the enforcement decree of the Special Financial Transactions Act.

The FIU plans to meet this month with major domestic exchanges including Dunamu, Bithumb, Coinone, Korbit and Gopax to discuss proposed amendments to the decree and related supervisory rules, Dailyan reported on June 2.

The agency previously held a closed-door meeting with the heads of the five major won-market exchanges on May 19. It set up a working-level anti-money laundering consultative body the following day to continue detailed discussions.

The proposed decree revision would allow domestic virtual-asset service providers to conduct transfer transactions with overseas virtual-asset service providers and personal wallets on a limited basis. It would also require transactions of 10 million won ($7,250) or more to be reported to the FIU.

In explanatory materials released on May 29, the FIU said it was reviewing reasonable alternatives to the reporting requirement for virtual-asset transfer transactions of 10 million won ($7,250) or more, taking into account anti-money laundering needs and the compliance burden on virtual-asset service providers.

The revised enforcement decree is scheduled to be finalized in July after reviews by the Regulatory Reform Committee and the Ministry of Government Legislation, followed by Cabinet approval. Related detailed rules will take effect on Aug. 20, while some provisions will be introduced in phases starting next year.