South Korea Eliminates Threshold for Travel Rule in Crypto Transfers

cryptonews.ruPublicado a 2026-08-11Actualizado a 2026-08-11

Resumen

South Korea will remove the 1 million won (approx. $700) threshold for applying the Travel Rule to transfers between registered Virtual Asset Service Providers (VASPs). This change, approved by the cabinet, mandates that all such transfers, regardless of amount, must comply with the rule, requiring platforms to collect and verify sender and recipient information. The move aims to prevent users from bypassing regulations by splitting transactions into smaller amounts. Additionally, new anti-money laundering (AML) requirements are being introduced for transfers involving overseas crypto exchanges and private wallets. Local VASPs must assess counterparty risks and may only permit certain transactions, such as those to low-risk foreign exchanges or self-transfers. Transfers deemed high-risk will be prohibited. Platforms must also establish monitoring systems for suspicious transactions over 10 million won involving foreign entities. The decree also tightens VASP registration standards, including requirements for financial stability, internal controls, staffing, and infrastructure, with enhanced checks on major shareholders. Registration requirements take effect on August 20, with existing VASPs given a one-year grace period for some provisions. The expanded Travel Rule and related AML measures will come into force six months after the decree's publication.

South Korea will extend the Travel Rule to all transfers between registered Virtual Asset Service Providers (VASPs), eliminating the 1 million won (approximately $700) threshold.

The country's Cabinet approved amendments to the Enforcement Decree of the Act on the Reporting and Use of Certain Financial Transaction Information on Tuesday.

Following the changes, the Travel Rule will apply to all transfers between registered crypto service providers regardless of the amount. Receiving platforms will be required to obtain information about the sender and recipient. They will be able to request missing details or reject transactions in the absence of necessary data.

The elimination of the threshold is intended to prevent users from circumventing the rule by splitting transfers into smaller amounts, the Financial Intelligence Unit reported.

The agency cited a case where a user purchased Tether USDt (USDT) by depositing about 200 million won to a cryptocurrency exchange and then made 216 withdrawals, each less than 1 million won.

Related: South Korea Plans Stablecoin Rules as Opposition Seeks to Scrap Crypto Tax

South Korea Tightens Rules for Overseas Exchanges and Personal Wallets

The amendments introduce new anti-money laundering (AML) requirements for transfers involving overseas cryptocurrency exchanges and personal wallets.

Registered local VASPs will be required to assess counterparty risks and decide which transfers to permit. Transfers to low-risk overseas exchanges will be allowed. Transactions with other foreign exchanges and personal wallets will generally be permitted only if the sender and recipient are the same person.

Transactions with counterparts deemed high-risk will be prohibited.

Crypto platforms will also be required to establish their own suspicious transaction monitoring systems for transfers of 10 million won or more involving foreign exchanges or personal wallets.

South Korean authorities stated that the number of suspected money laundering cases involving overseas exchanges and personal wallets has increased, with loopholes in the current AML rules for such transfers being exploited.

The Decree also tightens registration requirements for crypto service providers, including standards for financial soundness, internal controls, staffing, and infrastructure, and expands the vetting of major shareholders.

The VASP registration requirements will take effect on August 20. Existing providers will be given an additional year to meet some of the requirements related to finances, personnel, infrastructure, and internal controls. The expanded Travel Rule and other AML requirements related to transfers will take effect six months after the Decree's publication.

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Preguntas relacionadas

QWhat is the main change South Korea is implementing regarding the Travel Rule for crypto transfers?

ASouth Korea is abolishing the 1 million won (approx. $700) threshold for the Travel Rule, making it apply to all transfers between registered Virtual Asset Service Providers (VASPs), regardless of the amount.

QWhat new AML requirements did South Korea's amendments introduce for transfers involving overseas exchanges and personal wallets?

AThe amendments introduce new AML requirements where registered local VASPs must assess counterparty risks. Transfers to low-risk overseas exchanges are permitted, while transactions with high-risk counterparties are prohibited. Transfers involving other foreign exchanges and personal wallets are generally allowed only if the sender and recipient are the same person.

QWhy did the South Korean government decide to eliminate the Travel Rule threshold?

AThe government decided to eliminate the threshold to prevent users from bypassing the Travel Rule by splitting large transfers into multiple smaller amounts, each below the original threshold of 1 million won.

QWhat specific example did the Financial Intelligence Unit provide regarding the circumvention of the Travel Rule?

AThe Financial Intelligence Unit cited a case where a user deposited about 200 million won into a crypto exchange, purchased Tether USDt (USDT), and then made 216 separate withdrawals, each for an amount less than 1 million won, to avoid the Travel Rule.

QWhen will the expanded Travel Rule and other new AML requirements for transfers come into effect?

AThe expanded Travel Rule and other AML requirements related to transfers will come into effect six months after the publication of the amended decree.

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