Regulators will enforce Travel Rule on all crypto transfers between registered providers to curb money laundering risks.
South Korea will eliminate its 1 million won ($700) minimum threshold for crypto transfer reporting, applying the Travel Rule to all transactions between registered virtual asset service providers. The move aims to prevent users from bypassing oversight by splitting large transfers into smaller amounts below the previous limit.
Previously, the rule only applied to transfers exceeding 1 million won. The Financial Intelligence Unit cited cases where users made hundreds of sub-threshold withdrawals to avoid scrutiny, including one involving 200 million won split into 216 transactions. The amendments also introduce stricter Anti-Money Laundering requirements for overseas exchanges and personal wallets.
The changes follow Cabinet approval of amendments to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information. Receiving platforms must now collect sender and recipient details for all transfers, regardless of value.