South Korea removes Travel Rule threshold, tightens crypto operator vetting

South Korea’s Cabinet has approved an amendment that gets rid of the requirement for exchanges to report crypto transfers over 1 million won.

The amendment also mandates financial-health tests for exchange operators.

What is changing about reporting requirements for South Korean exchanges?

The Financial Intelligence Unit of the Financial Services Commission (FSC) has approved a change that revises the enforcement decree of the Act on Reporting and Using Specified Financial Transaction Information. 

The main change is to the Travel Rule, which is the requirement that a sending platform must pass sender and receiver details to the receiving platform. Since it went live on March 25, 2022, it only applied to transfers above 1 million won, roughly $700, but now, with the amendment, that threshold is deleted completely, attaching the reporting obligation to transfers of any value.

Platforms that receive transfers without the required information from the originating platform are now required to ask for the missing data and refuse the transaction if it never arrives.

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