The Digital Asset eXchange Alliance (DAXA) has raised significant concerns regarding proposed amendments to South Korea's anti-money laundering regulations. The alliance, which represents a collective of 27 registered virtual asset service providers, argues that the changes could overwhelm the reporting system. The source reports that these amendments may lead to increased compliance costs and operational challenges for the firms involved.
DAXA's Concerns Over New Reporting Requirements
DAXA's primary contention revolves around a new requirement that mandates exchanges to report every overseas cryptocurrency transfer exceeding 10 million Korean won as suspicious. The alliance estimates that this could escalate the number of reports from the current 63,000 to a staggering 54 million annually.
Impact on Compliance and Operational Capabilities
Such a dramatic increase in reporting obligations, according to DAXA, would render effective compliance nearly impossible, potentially hindering the operational capabilities of exchanges. The alliance is advocating for a more balanced approach that ensures both regulatory compliance and the sustainability of the virtual asset market in South Korea.
In contrast to the concerns raised by DAXA regarding South Korea's AML regulations, Thailand's SEC has proposed a new framework for digital asset derivatives licensing, aiming to simplify the process for crypto firms. For more details, see read more.
