Formaldehyde emission from wood-based panels remains a critical issue at the interface of material engineering, indoor air quality, and regulatory science. International standards and regulations have progressively lowered permissible emission limits. However, these frameworks rely predominantly on static chamber measurement and short-term evaluation, which limits their predictive capacity for long-term performance under dynamic environmental conditions. Modern adhesive technologies including ultra-low molar ratio resins, hybrid bio-based systems, and nano-enabled mitigation strategies introduce emission-related behavior that existing tests do not fully capture. This Letter critically examines current emission standards, identifies technical limitations, and outlines prospects for performance-based, durability-integrated regulation. Wood-based panels such as particleboard, MDF, OSB, and plywood are indispensable materials in construction and furniture manufacturing. However, formaldehyde emission associated with thermosetting resins has long been a regulatory and health concern due to its acute and chronic effects on indoor air quality, including irritation and potential carcinogenicity. Regulatory frameworks have progressively tightened limits on formaldehyde release, exemplified by chamber-based classification.