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opp

The South Korean cryptocurrency industry collectively opposes the new anti-money laundering regulations, planning to require all overseas transfers of over 10 million won to be reported as suspicious transactions

According to Cointelegraph, the South Korean crypto industry group DAXA (Digital Asset Exchange Alliance), representing 27 registered virtual asset service providers (VASP), has submitted objections to the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU) regarding the proposed amendments to the implementation order of the Specific Financial Information Act.The new regulations aim to require domestic VASPs to report any virtual asset transfers with foreign VASPs as suspicious transaction reports (STR) if the amount reaches 10 million won (approximately $6,800), regardless of the risk level. DAXA warned that this would cause the annual reporting volume of South Korea's five major trading platforms (Upbit, Bithumb, Coinone, Korbit, Gopax) to surge from about 63,000 last year to over 5.4 million, making compliance practically impossible.The industry also opposes the proposed requirement to verify the accuracy of customer information, arguing that the subordinate rules impose obligations not clearly defined by law. This industry backlash comes as exchanges face sanctions from financial regulators in court. On April 9, the court ruled to lift part of the business suspension against Upbit operator Dunamu, but the regulators have appealed. On April 30, the court suspended the six-month partial business suspension against Bithumb. Coinone also received a temporary stay of execution.The public consultation period for the new regulations ends on May 11, and it is expected to be finalized in July after regulatory and legal reviews. This highlights the tension between South Korea's tightening of crypto anti-money laundering regulations and the industry's concerns about excessive compliance burdens.

a16z supports the U.S. CFTC and opposes a series of crackdowns by various states on prediction markets

The venture capital firm a16z supports the U.S. Commodity Futures Trading Commission (CFTC) and opposes a series of crackdowns by various states on prediction markets. On Friday, a16z submitted an 18-page comment letter to the CFTC, stating that the actions taken by state regulators against prediction market platforms—including cease-and-desist orders and proposed bans—are creating "serious barriers to fair access" for users.In just the past month, the CFTC has filed a series of lawsuits against Illinois, Arizona, Connecticut, New York, and Wisconsin, claiming that these states are attempting to regulate markets overseen by the federal government, which exceeds their jurisdiction. a16z argues that requiring trading platforms to block U.S. users based on their state of residence conflicts with the CFTC's rules on fair market access. The company wrote, "Being forced to deny fair access to users from states seeking to license or ban certain event contracts could severely compress available liquidity."CFTC Chairman Mike Selig asserts that the event contracts of prediction markets fall under swap contracts, placing them within the CFTC's "exclusive jurisdiction." State regulators and state attorneys general counter that platforms like Kalshi and Polymarket offer unlicensed gambling products. a16z also discussed the utility provided by what it calls prediction markets, stating that their pricing mechanism is a "unique form of price discovery" that helps "reveal the probabilities of uncertain events." The company further argues that blockchain-based prediction markets are more transparent than traditional platforms, claiming that "the auditability of on-chain transactions" makes it easier for participants and regulators to oversee.In April, the prediction markets Polymarket and Kalshi surpassed a cumulative trading volume of $15 billion.
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