South Korea Dumps Crypto Travel Rule Threshold

South Korea has decided to remove the monetary threshold for its crypto travel rule, effective August 20. The rule requires virtual asset service providers (VASPs) to submit transaction information for every digital asset transfer, regardless of amount.

The current framework only required VASPs to provide sender and recipient information for transfers exceeding 1 million won ($730). This threshold will now be eliminated, aligning South Korea with the Financial Action Task Force (FATF) recommendations.

According to the FATF, the travel rule should apply to all virtual asset transfers, not just those above a certain value. The organization has repeatedly urged member countries to enforce the rule without exemptions, citing the risk of money laundering and terrorist financing through smaller transactions.

This regulatory tightening will have an impact on exchanges operating in South Korea, as they must now perform enhanced due diligence on all transactions. Users may notice additional verification steps when sending crypto, especially to unhosted wallets or foreign exchanges.