South Korea2026.10.12Digital Asset

Concerns Over DeFi 'Access Blocking' Discussion: 'Function-Specific Regulation Needed'

• The Korea Institute of Finance (KIF) submitted the 'Phase 2 Legislation and Stablecoin-related AML System Supplementation Report' to the Financial Services Commission (FSC) at the end of last year.
• The report suggests imposing AML/CFT obligations on decentralized and OTC-support service providers by broadly interpreting them as falling under regulated virtual asset business, rather than naming them as direct regulatory targets.
• The proposal to potentially restrict access to DeFi platforms has sparked backlash and concern in the market, with critics calling for regulation tailored to specific functions rather than blanket access restrictions.