South Korea Tightens Crypto Transfer Rules Amid Money Laundering Concerns

South Korea's Financial Intelligence Unit (FIU) has implemented new regulations to tighten oversight of cryptocurrency transfers and offshore exchanges. The revised supervisory rules require domestic virtual asset service providers (VASPs) to restrict transfers to self-hosted wallets that are registered under the customer's own name, in an effort to reduce money laundering and terrorist financing.

The new rules also establish a three-tier risk-based framework for transactions with offshore exchanges. High-risk exchanges will face full transaction restrictions, while lower-risk platforms may have fewer requirements.

The regulations are aimed at strengthening the integrity of the financial system while supporting the legitimate use of digital assets. The FIU hopes to enhance transparency in crypto transactions while balancing user privacy and regulatory compliance.