South Korea Ditches Crypto Transaction Threshold for Travel Rule Checks
The South Korean government has scrapped its previous requirement for cryptocurrency transactions to be worth at least 1 million won before being subject to the Travel Rule. This rule, aimed at preventing money laundering and illicit activities, will now apply to every transfer between registered domestic virtual asset service providers (VASPs) in Korea.
As part of the new regulations, receiving exchanges must obtain sender and recipient information from sending VASPs, with the option to request additional data or reject a transfer if necessary. This change is intended to prevent users from avoiding scrutiny by splitting transfers into smaller amounts under the old threshold.
The expansion of the Travel Rule comes after months of regulatory debate, during which industry concerns were raised about the operational burden created by wider anti-money laundering (AML) requirements. The new rules also introduce a risk-based framework for transfers between Korean VASPs and overseas exchanges or personal wallets.