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South Korea has approved rules that will extend its crypto Travel Rule to every transfer between registered domestic virtual asset service providers, removing the current ₩1 million minimum.
The Cabinet approved the revised enforcement decree on August 11. The government said the change is intended to prevent users from avoiding anti-money laundering controls by splitting transfers into amounts below the existing threshold.
All Domestic VASP Transfers Will Require Customer Information
Under the current framework, the Travel Rule applies when registered Korean VASPs transfer virtual assets worth at least ₩1 million. The revised rules remove that floor, bringing transfers of any value into the information-sharing requirement.
Receiving VASPs will also take on new information-gathering duties. They must obtain required transfer information from the sending provider, request missing information and reject transactions when the necessary details cannot be secured.
Regulators said transfers below ₩1 million accounted for about 60% of transactions between domestic VASPs by number during the second half of 2025. The government said the zero-threshold rule is intended to reduce opportunities for regulatory avoidance and money laundering.
Overseas Platforms and Personal Wallets Face Risk-Based Controls
Transfers involving overseas VASPs or personal wallets will operate under a separate risk-based framework.
Transfers to low-risk overseas providers can proceed, while transactions involving other foreign providers or personal wallets can be permitted when the sender and recipient are the same person. High-risk transfers can be restricted.
For transfers worth at least ₩10 million involving overseas platforms or personal wallets, registered Korean VASPs must operate internal systems for identifying and managing suspicious transactions regardless of the counterparty’s risk classification.
Zero-threshold Travel Rule starts six months after promulgation
The Cabinet approval does not make the expanded Travel Rule effective on August 20.
Strengthened VASP registration requirements and provisions concerning former-employee sanction notifications take effect on August 20. The Travel Rule expansion and other virtual asset transfer AML requirements will instead begin six months after the revised rules are promulgated.
South Korea first introduced its crypto Travel Rule in 2022. The Financial Services Commission said the latest changes respond in part to concerns that low-value transfers can be used to avoid existing AML controls.
Registered exchanges now have the transition period to adjust their information-sharing and transaction-monitoring systems before the zero-threshold requirement takes effect.
