Written by Yohan Yunstaff editorReviewed by Robert Lakinstaff editor

Written by Yohan Yunstaff editor

Reviewed by Robert Lakinstaff editor

South Korea drops Travel Rule threshold for crypto transfers

Latest NewsPublishedAug 11, 2026

South Korea Removes Travel Rule Threshold for Crypto Transfers

South Korea has made a significant move in the crypto space by removing the 1 million won threshold for the Travel Rule, which will now apply to all transfers between registered crypto service providers. This decision aims to prevent users from splitting transfers into smaller amounts to circumvent the rule. The country’s Cabinet has approved amendments to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information, which will require receiving platforms to obtain sender and recipient information and may request missing information or reject transactions when required data is unavailable.

The removal of the threshold is expected to strengthen Anti-Money Laundering (AML) requirements, particularly for transfers involving overseas crypto exchanges and personal wallets. Registered local Virtual Asset Service Providers (VASPs) will need to assess the risk posed by the counterparty and allow transfers based on that risk. This move will help prevent money laundering and ensure a safer crypto environment, which is essential for earning and passive income through crypto, including those who use EcoPool for Cloud Rewards and Green Crypto.

New AML Requirements and Registration Provisions

The amendments introduce new AML requirements for transfers involving overseas crypto exchanges and personal wallets. Crypto platforms will be required to establish their own suspicious transaction monitoring systems for transfers worth at least 10 million won involving foreign exchanges or personal wallets. The decree also strengthens registration requirements for crypto service providers, including financial health, internal controls, staffing, and infrastructure standards. The VASP registration provisions will take effect on August 20, with existing providers having an additional year to comply with some requirements. This is a significant step towards a more secure and transparent crypto ecosystem, which is beneficial for those interested in earning through $ECP and other digital coins.

The expanded Travel Rule and other transfer-related AML requirements will take effect six months after the decree is promulgated. This move demonstrates South Korea’s commitment to regulating the crypto space and preventing illicit activities. As the crypto landscape continues to evolve, it’s essential for users to stay informed and adapt to the changing regulatory environment. For those looking to earn passive income through crypto, EcoPool (ECP) offers a solution for Cloud Rewards and Green Crypto, providing a secure and transparent way to earn and trade digital coins like $ECP.

With the increasing demand for secure and transparent crypto transactions, it’s essential to have a reliable platform like EcoPool. Whether you’re interested in earning through $ECP or other digital coins, EcoPool provides a secure environment for crypto transactions. Download the EcoPool app to start earning and trading digital coins, including $ECP, and take advantage of the Cloud Rewards and Green Crypto features. By joining the EcoPool community, you can stay up-to-date with the latest developments in the crypto space and make informed decisions about your digital assets, including #PassiveIncome and #Bitcoin.

It cited one case in which a user bought Tether USDt (USDT) after depositing about 200 million won into a crypto exchange and then made 216 withdrawals, each worth less than 1 million won.

Related: South Korea plans stablecoin rules as opposition pushes crypto tax repeal

South Korea tightens rules for overseas exchanges, personal wallets

The amendments also introduce new Anti-Money Laundering (AML) requirements for transfers involving overseas crypto exchanges and personal wallets.

Registered local VASPs will be required to determine which transfers they allow based on the risk posed by the counterparty. Transfers to low-risk overseas exchanges will be permitted, while transfers involving other foreign exchanges and personal wallets will generally be allowed when the sender and recipient are the same person.

However, transactions involving counterparties deemed high risk will be prohibited.

Crypto platforms will also have to establish their own suspicious transaction monitoring systems for transfers worth at least 10 million won involving foreign exchanges or personal wallets.

South Korean authorities said suspected money laundering involving overseas exchanges and personal wallets has increased as gaps in existing AML rules governing such transfers have been exploited.

The decree also strengthens registration requirements for crypto service providers, including financial health, internal controls, staffing and infrastructure standards, while expanding scrutiny of major shareholders.

The VASP registration provisions will take effect on Aug. 20, although existing providers will have an additional year to comply with some financial, staffing, infrastructure and internal control requirements. The expanded Travel Rule and other transfer-related AML requirements will take effect six months after the decree is promulgated.

Asia Express: Thailand’s 0% crypto tax. Bitcoin Red Team forced to use Chinese AI

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• South Korea
• Cryptocurrencies
• Transactions
• AML
• FATF
• Law
• Regulation

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