South Korea has expanded its anti–money laundering requirements by lowering the minimum amount for the crypto Travel Rule.
Previously, transactions below 1 million won (approximately $680) did not require full details of the sender and receiver.
On November 28, the Financial Services Commission announced that exchanges must collect and share this information for all transfers, regardless of amount.
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Virtual asset service providers in South Korea must follow tougher background checks for major shareholders. Individuals with past convictions for crimes such as drug offenses or tax fraud will be ineligible to own large stakes in these companies.
The new plan features a system to freeze accounts early in cases viewed as particularly high risk. Regulatory authorities will be able to temporarily stop the movement of funds suspected of being linked to criminal activity, such as gambling or narcotics, while investigations are underway.
This is designed to protect the public without creating excessive inconvenience. Proposed updates to the law are scheduled for completion and presentation to the National Assembly in the first half of 2026.
South Korean officials also look to deepen cooperation with global partners. The Financial Intelligence Unit has plans to strengthen ties with counterparts in Southeast Asian countries.
At the next Financial Action Task Force meeting, South Korea will present strategies to address threats such as online scams and the use of cryptocurrencies for terrorist financing.
Recently, South Korea’s efforts to establish official rules for won-based stablecoins were delayed. Why? Read the full story.
