South Korea is getting ready to develop its anti-money laundering guidelines for cryptocurrency transactions. The federal government will lengthen 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 regulation bans insider buying and selling, market manipulation, and unlawful buying and selling of digital belongings. It additionally offers regulators broader powers to examine exchanges and implement penalties for violations.
Monetary Companies Fee Chairman Lee Eok-won advised the Nationwide Meeting’s Laws and Judiciary Committee that the federal government will act towards unlawful monetary exercise involving crypto. “We are going to crack down on crypto cash laundering increasing the Journey Rule to transactions below 1 million received,” he mentioned.
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Beneath the present threshold, customers can break up transfers into smaller quantities to keep away from id checks. The brand new rule will take away this hole. Crypto exchanges should accumulate and share sender and receiver data for smaller transfers.
Excessive-Danger Offshore Exchanges Will Be Blocked
The FSC mentioned the rule targets rising use of crypto for tax evasion, drug trafficking, and abroad fee schemes. It will likely be applied alongside stricter controls on “high-risk” offshore exchanges, which shall be blocked from serving South Korean customers.
South Korea plans a serious AML overhaul, increasing the Journey Rule to all crypto transfers, together with these below 1 million KRW, to cease “smurfing” by way of small transactions. Regulators can even 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. Individuals with data of drug or tax crimes shall be barred from changing into main shareholders in licensed crypto corporations.
South Korea Expands Worldwide AML Cooperation
The Monetary Intelligence Unit will acquire early account-freezing powers in severe circumstances to forestall funds from being moved throughout investigations.
Officers intention to finalize the framework within the first half of 2026. Lawmakers will assessment the proposed authorized adjustments. The federal government can even develop cooperation with worldwide our bodies, together with the Monetary Motion Job Pressure.
