meta_id 3015952

On March 30, 2026, South Korea's Financial Services Commission (FSC) announced legislative notice and regulatory amendments to the Act on the Reporting and Use of Specific Financial Transaction Information (the Specific Financial Information Act) . The amendments implement provisions from the act that was promulgated on February 19, 2026, and will take effect on August 20, 2026. The amendments strengthen virtual asset business operator entry requirements by expanding the scope of major shareholders subject to review to include shareholders who appoint more than half of directors or representatives, and the largest shareholders and representatives of corporate major shareholders. The FSC introduces financial soundness and social credit requirements, including debt-to-equity ratios not exceeding 200 percent based on the most recent quarterly financial statements, and absence of credit defaults over the past three years. Virtual asset business operators must establish appropriate governance structures, including compliance officers and anti-money laundering personnel. The amendments enhance anti-money laundering obligations for virtual asset transfers by expanding the travel rule information provision requirement from transfers exceeding 1 million Korean won to all transfers, reflecting that 60 percent of domestic virtual asset transfers are below this threshold. For transfers involving overseas virtual asset operators and personal wallets, transactions are restricted based on risk assessment, with transfers exceeding 10 million won automatically reported as suspicious transactions. The amendments also clarify customer identification obligations to include verification of information accuracy and enhanced customer due diligence for high-risk customers and products. The legislative notice and regulatory change notice period runs from March 30 to May 11, 2026. Following regulatory reform committee and legal review, the amendments are expected to be completed by July 2026, with implementation is scheduled to be on August 20, 2026 (subject to change based on results of the consultation). Comments should be submitted to jyeonsu28@korea.kr or by post to the Financial Intelligence Unit, Seoul Government Complex, 209 Sejong-daero, Jongno-gu, Seoul.