South Korea pulls back its strictest crypto reporting proposal

South Korea's Financial Intelligence Unit (FIU) has dropped a proposal that would have required crypto exchanges to treat every cross-border transfer above 10 million won (about $7,000) as suspicious, regardless of risk. Exchanges warned the measure would flood the system with filings, lifting annual reports from about 63,000 to roughly 5.4 million—an 85-fold increase. After discussions with exchange CEOs, the FIU opted to scrap the rule and let firms manage reporting based on their own risk assessments.