Korea’s Special Financial Act revision raises travel rule concerns over tiny crypto transfers

On the afternoon of May 12, a seminar titled “U.S. Stablecoin AML Regulation and Tasks for Revising Korea’s Specific Financial Information Act” was held in the National Assembly Members’ Office Building. Co-hosted by Democratic Party lawmakers Min Byung-deok and Park Min-kyu and Rebuilding Korea Party lawmaker Shin Jang-sik, and organized by MRI, the session examined the Financial Services Commission’s proposed enforcement-decree revision. Speakers said the U.S. GENIUS Act would make stablecoin issuers responsible for controls such as freezing and burning tokens, while Korea’s proposal could increase travel rule and suspicious transaction report burdens. DAXA estimated that STR cases at five won-based exchanges could rise from 63,408 to 5,445,133, up 8,487%. Automatic STR duties for transfers of 10 million won or more could add over 130 billion won in annual labor costs. Experts warned excessive regulation could drive users and firms abroad and widen AML blind spots. Source: mk.co.kr.