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South Korean Crypto Exchanges Push Back on 10 Million Won Auto-Report Rule

Exchanges say the draft would flood watchdogs with low-value alerts by treating routine transfers as suspicious.

Overview

  • DAXA, the industry group for 27 licensed platforms, filed formal objections during a public comment window that runs until May 11.
  • The draft would require a suspicious transaction report for any overseas crypto transfer at or above 10 million won, which is about $6,800, regardless of risk signals.
  • The group estimates annual reports at the five biggest exchanges would jump from about 63,000 to more than 5.4 million, an increase it says would overwhelm compliance teams.
  • DAXA also objects to a proposed duty to verify customer details beyond standard know-your-customer checks, arguing the measure lacks clear backing in primary law.
  • Courts recently gave Upbit relief on April 9 and paused penalties for Bithumb on April 30 and Coinone, and regulators still plan to finalize the decree in July after their review.