South Korea drops Travel Rule threshold for crypto transfers
South Korea is expanding its crypto Travel Rule to cover all transfers between registered virtual asset service providers, removing the current 1 million won threshold. Receiving platforms must collect sender and recipient information, and can request missing data or reject transfers if required details are unavailable. The change aims to stop users from splitting transfers into smaller amounts to evade reporting. The decree also adds stronger AML rules for transfers involving overseas exchanges and personal wallets. Local VASPs must assess counterparty risk, allow transfers only in lower-risk cases, and block transfers involving high-risk counterparties. Platforms must also build suspicious-transaction monitoring systems for transfers of at least 10 million won involving foreign exchanges or personal wallets. Registration requirements for crypto providers are also being tightened, including standards for financial health, controls, staffing, infrastructure, and major shareholders. The new Travel Rule and transfer AML rules take effect six months after promulgation.
