DAXA Objects to Crypto AML Reporting Threshold of 10M Won

South Korea's Digital Asset Exchange Alliance (DAXA), representing 27 registered virtual asset service providers including the five largest exchanges, has formally objected to proposed anti-money laundering amendments that would require reporting all transactions exceeding 10 million won (about $6,800) with overseas counterparts as suspicious.

The objection, submitted on April 29 through the Korea Legislation Research Institute's public comment portal, targets changes to the enforcement decree of the Specific Financial Information Act. Under current rules, operators file suspicious transaction reports with the Financial Intelligence Unit (FIU) only when they have reasonable grounds to suspect illicit activity. The proposal would automatically classify cross-border transfers above the threshold as suspicious, regardless of risk indicators. DAXA estimates this would surge annual reports from the top five exchanges—Upbit, Bithumb, Coinone, Korbit and Gopax—from 63,000 last year to more than 5.4 million, an 85-fold increase that could overwhelm compliance systems.

The alliance also criticized a new requirement to verify the accuracy of customer identification data, arguing it...