South Korea's FIU Changes Virtual Asset Oversight, Scraps Mandatory STR for 10 Million Won+ Transactions

According to an announcement on June 4, South Korea's Financial Intelligence Unit (FIU) shifted its regulatory approach for virtual asset transfers abroad, replacing a blanket mandatory suspicious transaction reporting (STR) requirement for transactions of 10 million won or above with an exchange-led risk management framework. Under the revised Special Financial Information Act implementation rules set to take effect August 20, exchanges will now establish their own assessment criteria for managing high-value transactions, strengthened customer verification (KYC) requirements, and anti-money laundering standards. The minimum threshold for travel rule compliance has been eliminated. Additionally, the FIU granted a one-year grace period for the proposed debt-to-equity ratio cap of 200% for cryptocurrency business operators.
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