South Korea's crypto industry opposes proposed amendments to anti-money laundering regulations, arguing that the compliance burden is too heavy.

CoinFeed reported on May 4th that, according to Cointelegraph, the Korea Digital Asset Exchange Alliance (DAXA), representing 27 registered Virtual Asset Service Providers (VASPs), submitted objections to the Financial Services Commission's (FSC) proposed amendments to anti-money laundering regulations. The proposed new regulations would require domestic VASPs to submit Suspicious Transaction Reports (STRs) for virtual asset transfers between domestic and overseas VASPs exceeding 10 million won (approximately US$6,800). DAXA pointed out that this requirement would significantly increase compliance pressure, for example, leading to a substantial surge in suspicious transaction reports on the five major cryptocurrency exchanges, making actual compliance difficult to achieve. They also opposed the requirement to "verify customer information" in the new regulations, arguing that it constituted an additional obligation.