The financial authorities are reviewing an alternative to ease the burden of the obligation to report virtual asset transfer transactions of 10 million won or more included in the amendment to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information.
According to the financial authorities on the 29th, the Korea Financial Intelligence Unit (FIU) is hearing industry opinions on the provision and is reviewing a plan to ease the burden.
Earlier, in Mar., the financial authorities issued advance notice of legislation for an amendment to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information that would require domestic virtual asset service providers (VASP) to file a suspicious transaction report (STR) when transferring virtual assets to overseas virtual asset service providers or personal wallets if the transaction size is 10 million won or more.
Unlike domestic providers, overseas providers or personal wallets are not subject to anti-money laundering (AML) obligations under the Act on Reporting and Using Specified Financial Transaction Information, leading to the assessment that there is a risk of money laundering. However, the industry has continued to note that, because virtual assets are highly volatile in price, it is difficult to determine suspicious transactions based solely on the transaction amount.