South Korea’s Financial Intelligence Unit (FIU) is preparing for another round of talks this month with the nation's top five crypto exchanges. The discussions will focus on controversial amendments to the Special Financial Transactions Act, which could reshape how local platforms interact with global liquidity and private wallets.
Representatives from Dunamu, Bithumb, Coinone, Korbit, and Gopax will sit down with regulators to hammer out the details of the proposed enforcement decree. This follows a closed-door session on May 19 and the subsequent launch of a joint anti-money laundering consultative body. The stakes are high for local operators who have long operated under some of the strictest regulatory frameworks in the Asia-Pacific region.
Under the draft decree, South Korean virtual-asset service providers (VASPs) would finally gain limited permission to facilitate transfers to overseas exchanges and non-custodial personal wallets. However, this operational freedom comes with a major catch. The FIU wants to mandate reporting for all transfer transactions valued at 10 million won ($7,250) or more.
Industry players argue that a blanket 10 million won reporting threshold imposes an excessive compliance burden on exchanges and friction for retail traders. Recognizing these concerns, the FIU indicated on May 29 that it is reviewing "reasonable alternatives" that balance anti-money laundering oversight with practical business operations. Finding a middle ground is crucial if local exchanges want to remain competitive without drowning in paperwork.
The regulatory clock is ticking. The finalized enforcement decree is scheduled for Cabinet approval in July after passing through the Regulatory Reform Committee and the Ministry of Government Legislation. Detailed supervisory rules are set to take effect on August 20, 2026, with several key provisions phased in starting in early 2027. Traders should watch for the final draft next month to see if the FIU compromises on the reporting threshold.
South Korea FIU to Meet Crypto Exchanges Over Transfer Rules
South Korea’s Financial Intelligence Unit will hold talks with major domestic crypto exchanges this month to discuss amendments allowing limited overseas transfers and reporting requirements. The revised decree aims to balance anti-money laundering needs with compliance burdens and is expected to be finalized by July.