Korea Ditches Threshold for Crypto Transfer Rule

South Korea has dropped the threshold for its Travel Rule on crypto transfers between registered virtual asset service providers (VASPs), expanding its reach to all transactions. The country's Cabinet approved amendments to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information, which removes the current 1 million won ($700) threshold.

The Travel Rule will now apply to all transfers between registered crypto service providers regardless of value. Receiving platforms will be required to obtain sender and recipient information and may request missing data or reject transactions when necessary information is unavailable.

The move aims to prevent users from circumventing the rule by splitting transfers into smaller amounts, according to the Financial Intelligence Unit, which cited a case where a user bought Tether USDt (USDT) after depositing 200 million won into a crypto exchange and then made 216 withdrawals, each worth less than 1 million won.