South Korea Ditches 1M Won Crypto Transfer Threshold

The South Korean government has removed the 1 million won threshold for crypto Travel Rule checks, expanding information sharing requirements to every transfer between registered domestic virtual asset service providers.

Under the new rules, receiving exchanges must obtain sender and recipient information, requesting data or rejecting transfers when necessary. This change aims to prevent users from avoiding scrutiny by splitting transfers into smaller amounts, as about 60% of transfers between domestic VASPs were below the existing threshold.

The expansion also introduces a risk-based framework for transfers involving overseas exchanges or personal wallets. Transactions worth at least 10 million won will require internal monitoring and may be restricted if the sender and recipient are not the same person, while high-risk transactions can be prohibited entirely.