South Korea Eliminates Minimum Threshold for Crypto Travel Rule

The Financial Services Commission (FSC) confirmed that the new requirements apply to all domestic transfers regardless of value. This expansion addresses data showing that roughly 60% of transfers between local providers previously fell below the 1 million won threshold. Regulators cited instances of evasion, including one case where 200 million won was funneled into USDT through 216 separate withdrawals designed to avoid detection.

Under the updated framework, receiving platforms must secure sender and recipient information, with the authority to request missing data or reject transactions outright. Transfers involving overseas exchanges or personal wallets will now be subject to a risk-based assessment. While low-risk transactions may proceed, others require the sender and recipient to be the same individual, and high-risk transfers face potential prohibition. Additionally, providers must implement internal monitoring systems for any cross-border transfers exceeding 10 million won.

These changes place South Korea ahead of the current U.S. model, which typically applies the Travel Rule to transmittals of $3,000 or more. The new requirements for domestic transfers will take effect six months after the official promulgation of the decree. While registration provisions for virtual asset service providers begin August 20, the industry has been granted a one-year grace period to meet secondary requirements regarding debt ratios, staffing, and internal infrastructure.