PANews 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. Instead, exchanges are now responsible for managing 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. Following industry feedback, the FIU decided to eliminate mandatory reporting and instead require 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 verification for high-risk and suspicious transactions from mandatory to only applicable when a company deems the risk particularly high; granting small businesses a one-year grace period for the reporting requirement of a debt ratio not exceeding 200%; and allowing the use of overseas cloud services for the requirement that anti-money laundering computer equipment be located domestically. The amendments, after review by the Legal Affairs Department, will take effect on August 20.