South Korea to Tighten Crypto Travel Rule Below $680, | Crypto Work Pro
South Korea is getting ready to broaden its anti-money laundering
guidelines for cryptocurrency transactions. The authorities will prolong the crypto
Travel Rule to cowl transfers under 1 million received, or about $680.
The transfer follows the adoption
of the Virtual Asset Users Protection Act, which took impact in July final
yr. The law bans insider trading, market manipulation, and unlawful trading of
digital belongings. It additionally offers regulators broader powers to examine exchanges
and implement penalties for violations.
Smaller Crypto Transfers Now Under Scrutiny
Financial Services Commission Chairman Lee Eok-won instructed the
National Assembly’s Legislation and Judiciary Committee that the federal government
will act towards unlawful financial exercise involving crypto. “We will crack
down on crypto money laundering increasing the Travel Rule to transactions below
1 million received,” he mentioned.
Under the present threshold, customers can break up transfers into
smaller quantities to keep away from identification checks. The new rule will take away this hole.
Crypto exchanges can have to gather and share sender and receiver data
for smaller transfers.
High-Risk Offshore Exchanges Will Be Blocked
The FSC mentioned the rule targets growing use of crypto for tax
evasion, drug trafficking, and abroad fee schemes. It shall be carried out
alongside stricter controls on “high-risk” offshore exchanges, which shall be
blocked from serving South Korean customers.
South Korea plans a main AML overhaul, increasing the Travel Rule to all crypto transfers, together with these below 1 million KRW, to stop “smurfing” through small transactions. Regulators may also block high-risk abroad platforms, tighten financial necessities for native exchanges,…
— Wu Blockchain (@WuBlockchain) November 28, 2025
Exchanges will bear stronger financial critiques. The
standards for Virtual Asset Service Provider (VASP) registration shall be
widened. People with data of drug or tax crimes shall be barred from changing into
main shareholders in licensed crypto corporations.
South Korea Expands International AML Cooperation
The Financial Intelligence Unit will gain early
account-freezing powers in critical circumstances to forestall funds from being moved
during investigations.
Officials intention to finalize the framework within the first half of
2026. Lawmakers will review the proposed legal modifications. The authorities will
additionally broaden cooperation with worldwide our bodies, together with the Financial
Action Task Force.
This article was written by Tareq Sikder at www.financemagnates.com.
Stay up to date with the most recent developments in Crypto! Our web site is your go-to source for cutting-edge crypto information,
