FIU Adjusts Reporting Requirements for Virtual Asset Transfers

Domestic virtual asset businesses will now manage their own anti-money laundering risks instead of being required to report all transactions involving over 10 million won ($7,500) to financial authorities.

On June 5, the Financial Intelligence Unit (FIU), under the Financial Services Commission, met with representatives from virtual asset exchanges to gather industry feedback on proposed amendments to the Enforcement Decree and supervisory regulations of the Special Financial Act.

The initial proposal, announced in March, mandated that domestic businesses report any transfers of virtual assets exceeding 10 million won to the FIU, regardless of the transaction's risk level.

However, the virtual asset industry expressed concerns that mandatory reporting for all transactions over this threshold would lead to operational chaos.

In response, the FIU revised its approach, recognizing that enforcing blanket reporting based solely on transaction amounts could result in businesses submitting reports without proper risk assessments.