South Korea Ditches $700 Crypto Loophole, Tightens Anti-Money Laundering Checks

South Korea has tightened its grip on cryptocurrency transactions by eliminating the $700 threshold for the crypto Travel Rule. This means that from now on, every transfer between exchanges will be subject to anti-money-laundering checks.

The rule change is aimed at increasing transaction traceability and preventing illicit funds from moving through regulated platforms unnoticed. According to regulators, up to 60% of all transfers are currently below the threshold, making it difficult to monitor transactions effectively.

The new rules will require exchanges to collect and record basic personal information about their users for every transfer, regardless of its size. Exchanges will also need to assess the risk level of foreign counterparties before allowing cross-border transfers. For larger cross-border movements valued over 10 million won, crypto providers must establish internal suspicious transaction monitoring systems.