South Korea is getting ready to develop its anti-money laundering guidelines for cryptocurrency transactions. The federal government will prolong the crypto Journey Rule to cowl transfers beneath 1 million received, or about $680.
The transfer follows the adoption of the Digital Asset Customers Safety Act, which took impact in July final yr. The legislation bans insider buying and selling, market manipulation, and unlawful buying and selling of digital belongings. It additionally provides regulators broader powers to examine exchanges and implement penalties for violations.
Monetary Providers Fee Chairman Lee Eok-won advised the Nationwide Meeting’s Laws and Judiciary Committee that the federal government will act in opposition to unlawful monetary exercise involving crypto. “We’ll crack down on crypto cash laundering increasing the Journey Rule to transactions beneath 1 million received,” he mentioned.
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Underneath the present threshold, customers can cut up transfers into smaller quantities to keep away from identification checks. The brand new rule will take away this hole. Crypto exchanges should gather and share sender and receiver data for smaller transfers.
Excessive-Threat Offshore Exchanges Will Be Blocked
The FSC mentioned the rule targets rising use of crypto for tax evasion, drug trafficking, and abroad cost schemes. It is going to be applied alongside stricter controls on “high-risk” offshore exchanges, which shall be blocked from serving South Korean customers.
South Korea plans a significant AML overhaul, increasing the Journey Rule to all crypto transfers, together with these beneath 1 million KRW, to cease “smurfing” through small transactions. Regulators may also block high-risk abroad platforms, tighten monetary necessities for native exchanges,…
— Wu Blockchain (@WuBlockchain) November 28, 2025
Exchanges will bear stronger monetary critiques. The standards for Digital Asset Service Supplier (VASP) registration shall be widened. Folks with data of drug or tax crimes shall be barred from turning into main shareholders in licensed crypto companies.
South Korea Expands Worldwide AML Cooperation
The Monetary Intelligence Unit will achieve early account-freezing powers in critical instances to forestall funds from being moved throughout investigations.
Officers intention to finalize the framework within the first half of 2026. Lawmakers will evaluate the proposed authorized modifications. The federal government may also develop cooperation with worldwide our bodies, together with the Monetary Motion Process Pressure.
