South Korea\'s digital asset industry is watching proposed amendments to enforcement and supervisory rules under the Special Financial Information Act set to take effect in August. The draft strengthens screening requirements for reporting by digital asset service providers and expands anti-money laundering duties for transfers. It would extend the travel rule to transfers under 1 million won and require additional steps for receiving providers. It also sets reporting duties for certain overseas transfers and tightens customer verification and entry reviews.

South Korea\'s financial authorities will build an always-on system to monitor user assets at digital asset exchanges and sharply strengthen internal controls to financial-institution standards. The steps follow a recent mistaken payment incident at Bithumb and aim to fix structural problems and restore market trust. Regulators will require five-minute balance reconciliations, set automatic trade blocks for large discrepancies, shorten external audit checks to monthly from quarterly and expand disclosures.