Korea Drops Crypto Transfer Threshold, Zeroes in on Global Compliance

South Korea's Cabinet has approved amendments to the country's cryptocurrency anti-money laundering rules. The new regulations eliminate the ₩1,000,000 (approximately $707) minimum threshold that previously allowed criminals to bypass identity checks by splitting large transfers into smaller pieces.

The Travel Rule, derived from Financial Action Task Force Recommendation 16, requires virtual asset service providers (VASPs) to collect, verify, and pass along the identity of both the sender and recipient whenever they process a transfer between platforms. The rule will now apply to all transfers between registered domestic VASPs regardless of value.

The amendments also introduce new requirements for overseas exchanges and personal wallets. Korean exchanges must assess the risk level of any overseas counterparty before processing transfers, and transfers involving unregistered foreign exchanges or personal wallets will be prohibited unless the sender and recipient are the same person.