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South Korea removes 1 million won Travel Rule threshold for crypto transfers
South Korea says the change is meant to curb evasion by splitting transfers, after citing a case involving more than 200 million won deposited and 216 sub-1 million won withdrawals.
South Korea will expand its crypto Travel Rule so the information-sharing requirements apply to all transfers between registered virtual asset service providers, removing the previous 1 million won threshold. Cointelegraph reports the Cabinet approved amendments to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information on Tuesday.
Under the changes, receiving platforms must obtain sender and recipient information for all such transfers, and they can request missing data or reject transactions when required information is unavailable. The Financial Intelligence Unit said removing the threshold is intended to prevent users from circumventing the rule by splitting transfers into smaller amounts.
Cointelegraph says the FIU cited an example where a user bought Tether USDt (USDT) after depositing about 200 million won into a crypto exchange, then made 216 withdrawals, each worth less than 1 million won.
The amendments also add anti-money laundering requirements for transfers involving overseas crypto exchanges and personal wallets. Registered local VASPs will have to assess counterparty risk when deciding which transfers they allow, and platforms must set up suspicious transaction monitoring systems for transfers worth at least 10 million won tied to foreign exchanges or personal wallets.