South Korea tightens AML rules for crypto exchanges

THE NEWS:
South Korea’s Cabinet approved amendments on August 11 2026 that remove the long‑standing 1 million won (≈$720) threshold for the crypto “travel rule,” extending AML reporting to all cryptocurrency transfers.

DETAILS:

WHY IT MATTERS:
Eliminating the 1 million‑won limit expands AML reporting to all crypto transactions, increasing compliance obligations for virtual‑asset service providers and extending regulatory scrutiny to overseas exchanges and self‑custody wallets.

FAQ

What threshold was removed from South Korea’s crypto travel rule?
The 1 million won (about $720) threshold was eliminated, meaning all cryptocurrency transfers must now be reported under the travel‑rule requirements.

When were the amendments to South Korea’s AML framework for digital assets approved?
The Cabinet approved the amendments on August 11 2026, altering the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information.

Which regulator announced the sweeping changes to South Korea’s digital‑asset AML rules?
South Korea’s Financial Services Commission (FSC) approved the sweeping changes to the anti‑money‑laundering framework for digital assets.

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