South Korea Ends $700 Crypto Loophole, Enforces Travel Rule

THE NEWS: South Korea’s Cabinet approved amendments abolishing the 1 million won (around $700) threshold for the crypto Travel Rule, meaning every crypto transfer between exchanges must now be registered and recorded.

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WHY IT MATTERS:

FAQ

What threshold for crypto transfers did South Korea eliminate?
South Korea abolished the 1 million won (around $700) threshold that previously exempted crypto transfers from the Travel Rule, meaning all transfers between exchanges must now be registered and recorded, closing a loophole that let users split large transactions into many smaller ones to avoid AML checks.

Who approved the amendment to the crypto Travel Rule in South Korea?
The amendment was approved by South Korea’s Cabinet, which authorized the removal of the 1 million won exemption from the crypto Travel Rule, thereby requiring every crypto transfer between exchanges to be reported and recorded under the country’s strengthened regulatory oversight framework.

What is the purpose of the FATF’s Travel Rule mentioned in the article?
The Travel Rule, established by the Financial Action Task Force, is an anti‑money‑laundering requirement that obliges cryptocurrency businesses to collect and record basic personal information about users when they execute transfers, globally helping authorities detect and prevent illicit financial activity.

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