South Korea Revises Virtual Asset Transfer Reporting Rules

South Korea's Financial Intelligence Unit (FIU) has revised the enforcement decree of the Specific Financial Information Act, according to ChainCatcher. The amendment removes the mandatory reporting requirement for virtual asset transfers exceeding 10 million Korean won, allowing exchanges to manage risks independently. Previously, domestic operators were required to report transfers over this amount to foreign entities, regardless of risk level.

The FIU's decision follows industry feedback, shifting the responsibility to companies to establish internal risk management systems. Other changes include expanding the Travel Rule to cover all transaction amounts, rather than just those over 1 million Korean won. Enhanced customer verification for high-risk transactions will now be required only when companies assess the risk as particularly high.

Additionally, small enterprises will receive a one-year grace period for compliance with the debt ratio reporting condition, which must not exceed 200%. The requirement for anti-money laundering computer equipment to be located domestically will now permit the use of overseas cloud services. The revised decree is set to be implemented on August 20, following a review by the legislative office.