TechFlow News, May 4: According to Yonhap News Agency, the Korea Digital Asset Exchange Alliance (DAXA) submitted its official comments on the draft amendment to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information (“Special Financial Information Act”) to the National Participation Legislative Center of the Ministry of Government Legislation on April 29. The comments reflect the collective views of 27 virtual asset service providers (VASPs), including the five major exchanges Upbit and Bithumb.
DAXA raised objections to two core provisions in the draft amendment: First, the proposal categorizes all virtual asset transactions exceeding KRW 10 million as suspicious transactions, mandating compulsory reporting to the Financial Intelligence Unit (FIU). This is projected to increase the annual number of suspicious transaction reports filed by the five major exchanges from 63,000 to 5.445 million—a staggering 85-fold surge. Second, the draft introduces a new obligation to verify the accuracy of customer information, in addition to existing customer due diligence requirements—an obligation that exceeds the scope authorized by the parent law and imposes penalties far harsher than those applied to other financial sectors. While DAXA affirms the legislative intent behind the amendment—to strengthen the anti-money laundering (AML) framework—it contends that certain provisions overstep the boundaries of delegated authority and constitute discriminatory treatment against the virtual asset industry.
The draft amendment’s public consultation period ends on May 11, with finalization expected in July. The relevant provisions will be implemented in phases between August 2026 and 2027.
