"Concerns Over Expanded Travel Rule"... FIU Holds Closed Meeting with Virtual Asset Industry on Enforcement Decree of the Act on Specified Financial Transaction Information
The Financial Intelligence Unit (FIU), under the Financial Services Commission, met with the virtual asset industry for a closed-door consultation on the proposed revision to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information. The industry expressed concerns regarding the expansion of transaction reporting obligations following the implementation of the so-called 'travel rule,' which is commonly referred to as the real-name system for virtual assets.
According to financial authorities on May 19, the FIU held a closed meeting with representatives from the virtual asset industry that morning to hear their opinions on the proposed revision to the enforcement decree of the Act on Reporting and Using Specified Financial Transaction Information.
An FIU official stated, "There will be ongoing meetings, and since we will continue to communicate with the industry, we expect a positive outcome."
In March, the financial authorities officially announced the proposed revision to the enforcement decree of the Act on Reporting and Using Specified Financial Transaction Information. The revision includes expanding the scope of the travel rule, which currently applies to transactions of 1 million won or more, to cover transactions under 1 million won as well. In particular, the proposal requires transactions involving the transfer of virtual assets worth 10 million won or more to be classified as suspicious transactions (STR) and reported to the FIU.
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The Digital Asset Exchange Alliance (DAXA) recently gathered industry opinions and submitted an official statement to the Ministry of Government Legislation. The industry is concerned that if the scope of suspicious transaction reporting is expanded, trading activity could shrink. This is because measures such as temporary suspension of transactions or restrictions on deposits and withdrawals may be imposed once a suspicious transaction report is submitted.
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