South Korea’s Digital Asset Exchange Alliance Challenges Proposed Crypto Decree Changes

According to DAXA and the National Assembly Judiciary Committee, South Korea is moving to expand oversight of crypto cross-border activity, with one proposal expected for July review and another bill headed to a final vote as early as May 7.

14d ago

Fact Check

The core elements of the claim are strongly corroborated. 'Korean crypto exchanges push back against strict 10M won AML trigger' directly confirms DAXA's formal objection to the proposed FSC rule requiring suspicious transaction reports for virtual asset transfers of 10 million won or more. The Odaily newsflash confirms the FSC and FIU proposed the amendment on March 30 with final review expected in July, matching the claim's 'final review and implementation expected in July after consultation.' The FSC's official press releases page references the same March 30 Enforcement Decree revision. A minor nuance exists: the second crypto.news article references a 1 million won threshold for overseas-linked transfers specifically, suggesting the full proposal has multiple threshold tiers, but the 10 million won figure for the general suspicious transaction report trigger is consistently confirmed. The July implementation timeline and DAXA's challenge are both well-supported.

Summary

South Korea is advancing two related efforts to tighten oversight of crypto-related cross-border activity. The Digital Asset Exchange Alliance (DAXA), which represents 27 registered virtual asset service providers, has objected to a Financial Services Commission anti-money laundering rule that would require suspicious transaction reports for virtual asset transfers of 10 million won, or about $6,800, or more. DAXA says the broader reporting framework could raise suspicious transaction reports from about 63,000 to more than 5.4 million. Separately, the National Assembly Judiciary Committee has passed an amendment to the Foreign Exchange Transactions Act that would expand foreign exchange oversight to virtual asset service providers, including crypto exchanges, and the bill could reach a final plenary vote as early as May 7. The latest details state that the decree proposal is expected to be reviewed and implemented in July after public consultation.

Terms & Concepts

virtual asset service provider: A business that handles crypto-related services, such as exchanges or transfers, and is typically subject to anti-money laundering and financial compliance rules.
Foreign Exchange Transactions Act: A law that governs cross-border currency and payment activities, including reporting, supervision, and compliance requirements for international transactions.
suspicious transaction reports: Regulatory reports filed when a transaction appears unusual or potentially linked to illicit activity under financial crime monitoring rules.