South Korea's crypto industry collectively opposes new anti-money laundering regulations that require all overseas transfers of more than 10 million won to be reported as suspicious transactions

South Korea's crypto industry group DAXA (Digital Asset Exchanges Alliance) represents 27 registered virtual asset service providers (VASPs) and submitted objections to the amendments to the Implementation Order of the Specific Financial Information Act proposed by the Financial Commission (FSC) and the Financial Intelligence Agency (FIU). The new regulations plan to require domestic VASPs to transfer virtual assets with overseas VASPs, regardless of the risk level, as long as the amount reaches 10 million won (approximately US$6800) or more, it must be reported as a Suspicious Transaction Report (STR). DAXA warned that this will cause the annual report volume of South Korea's five major trading platforms (Upbit, Bithumb, Coinone, Korbit, Gopax) to increase 85 times from approximately 63,000 last year to more than 5.4 million, making compliance work almost impossible in practice. The industry also opposes the proposed requirement to verify the accuracy of customer information, arguing that lower-level rules add obligations that are not clearly stipulated in the law. The industry rally comes as exchanges and financial regulators face off in court for sanctions. On April 9, the court ruled to lift the suspension of some business of Upbit operator Dunamu, but regulators have filed an appeal. On April 30, the court suspended Bithumb's six-month suspension of some businesses. Coinone also received a temporary stay of execution. The public consultation period for the new regulations is until May 11 and is expected to be finalized in July after regulatory and legal review. This highlights the tension between South Korea's tightening of crypto anti-money laundering regulations and industry concerns about excessive compliance burdens.