South Korea removes Crypto travel rule threshold from Aug 20

THE NEWS:
South Korea will eliminate the 1 million‑won (about $730) threshold for its crypto travel rule, requiring virtual asset service providers to report every digital‑asset transfer starting Aug. 20, after a Cabinet review on Aug. 11, Digital Asset reported.

DETAILS:

WHY IT MATTERS:
By applying the travel rule to all crypto transactions, South Korea strengthens anti‑money‑laundering controls, meets global FATF standards, and increases compliance obligations for VASPs, which could affect the ease and cost of small‑value digital‑asset transfers within the market.

FAQ

When will the new crypto travel rule be enforced in South Korea?
The revised travel‑rule requirements will become effective on Aug. 20, requiring all virtual‑asset transfers to be reported regardless of size, as stipulated by the amended Act on Reporting and Using Specified Financial Transaction Information.

What threshold is being removed from South Korea’s crypto travel rule?
South Korea is removing the 1 million‑won (approximately $730) threshold that previously limited reporting to larger transfers, meaning every digital‑asset transfer must now be reported by virtual asset service providers.

How does the change align South Korea with international standards?
The amendment brings South Korea into line with Financial Action Task Force recommendations, which call for the travel rule to cover all virtual‑asset transfers, enhancing the country’s anti‑money‑laundering framework and global compliance reputation.

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