South Korea pushes for stricter crypto transfer rules
South Korea is advocating for the expansion of the Travel Rule to cover smaller crypto transfers. The proposal aims to apply anti-money laundering measures to crypto assets and virtual asset service providers.
The Financial Action Task Force (FATF) has approved a report examining risks associated with decentralized finance (DeFi). The report highlights regulatory arbitrage across jurisdictions due to differences in licensing, supervision, and offshore oversight.
The FATF assessment found that 49% of jurisdictions were only partially compliant with requirements for virtual asset service providers, while 21% remained non-compliant as of April 2025. This uneven implementation of FATF Recommendation 15 has raised concerns about the effectiveness of global anti-money laundering efforts.
The proposal is part of broader discussions on the implementation of FATF Recommendation 15, which was updated in 2019 to apply anti-money laundering measures to crypto assets.