South Korea Expands Cryptocurrency Travel Rule to 1 Million Won Threshold, Tightening AML for Virtual Assets

According to Yonhap News Agency, South Korea‘s Financial Services Commission will tighten anti-money laundering (AML) controls on cryptocurrency activities, as announced by FSC Chairman Eun Sung-soo at the 19th Anti-Money Laundering Day. The move strengthens regulatory oversight of digital assets and closes AML gaps.

Under the expanded Travel Rule, transfers as small as 1 million Korean won (about $680) will be monitored to address regulatory blind spots. Domestic exchanges must collect the sender’s and recipient’s names, plus wallet addresses, for deposits or withdrawals exceeding this threshold to deter illicit flows.

Regulators will broaden scrutiny of overseas crypto venues, prohibiting dealings with exchanges flagged as high AML risk. A more rigorous due-diligence framework will assess operators’ criminal records, financial status, and the social credibility of major shareholders, thereby strengthening entry barriers and investor safeguards.