South Korea approves removal of 1M Won crypto travel threshold

THE NEWS:
South Korea’s Financial Services Commission is scrapping the 1 million‑won ($700) threshold for its crypto “Travel Rule,” meaning registered virtual‑asset service providers must now exchange transaction information for transfers of any value, after the Cabinet approved the amendment on August 11.

DETAILS:

WHY IT MATTERS:
By eliminating the 1 million‑won limit, South Korea forces VASPs to report every crypto transaction, closing a loophole that allowed users to split large transfers and improving anti‑money‑laundering oversight across the digital‑asset market.

FAQ

What threshold is being removed from South Korea’s crypto Travel Rule?
The 1 million‑won (about $700) threshold that previously limited the Travel Rule to transfers of that size or more is being eliminated, meaning all crypto transfers, regardless of amount, must now have transaction information exchanged between VASPs to satisfy compliance obligations.

When did the Cabinet approve the amendments to the enforcement decree?
The amendments to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information were approved by South Korea’s Cabinet on August 11, as part of a broader effort to tighten anti‑money‑laundering controls in the country’s digital‑asset market.

Which agency will oversee virtual‑asset service providers under the new rules?
The Financial Intelligence Unit will play a key role in overseeing registered virtual‑asset service providers under the new rules, ensuring that transaction information is exchanged for every crypto transfer and that AML requirements are met. This oversight aims to close loopholes and improve market integrity.

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