South Korea Approves Tougher Crypto Travel Rule and VASP Regulations

TLDR

• South Korea removes the 1 million won threshold from its crypto Travel Rule.

• All registered VASP transfers will require sender and recipient information.

• New AML checks target overseas exchanges, personal wallets and risky transfers.

• Crypto firms face tougher financial, staffing and internal control standards.

• Expanded Travel Rule requirements will take effect six months after promulgation.

South Korea approved tougher crypto transfer and VASP regulations after the Cabinet backed key enforcement amendments on August 11. The package now removes the 1 million won Travel Rule threshold and expands controls on overseas transfers and personal wallets. It also strengthens registration standards, shareholder reviews, financial requirements, staffing rules, infrastructure duties, and internal compliance systems for crypto firms.

South Korea Expands Travel Rule and Transfer Checks

South Korea will apply the Travel Rule to every transfer between registered virtual asset service providers, regardless of value. The current framework only covers transfers worth at least 1 million won, equal to roughly $700, between registered providers. Regulators in South Korea said users could avoid reporting requirements by splitting larger transfers into smaller transactions below that threshold.

… Continue reading the full article at the original source below.