South Korea will abolish mandatory reporting for cryptocurrency transfers exceeding 10 million won, allowing exchanges to manage risk themselves.

CoinFeed reported on June 5th that, according to South Korean SBS News, the Financial Intelligence Service (FIU) of Korea has revised the Enforcement Order of the Specific Financial Information Act, eliminating the mandatory reporting obligation for virtual asset transfers exceeding 10 million won, and instead allowing exchanges to manage risk themselves. The original draft required domestic operators to report to the FIU whenever transferring more than 10 million won overseas, regardless of the risk level. After adopting industry feedback, the FIU decided to eliminate mandatory reporting, instead requiring companies to establish internal risk management systems. Other adjustments include: expanding the scope of the Travel Rule from over 1 million won to all amounts; changing the enhanced customer authentication for high-risk suspicious transactions from mandatory to only enforced when a company deems the risk particularly high; granting a one-year grace period to small businesses for reporting debt ratios not exceeding 200%; and allowing the use of overseas cloud services for the requirement that anti-money laundering computer equipment be located domestically.