South Korea is making ready to increase 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 property. It additionally offers regulators broader powers to examine exchanges
and implement penalties for violations.
Smaller Crypto Transfers Now Underneath Scrutiny
Monetary Companies Fee Chairman Lee Eok-won informed 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.
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 info
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. Will probably be carried out
alongside stricter controls on “high-risk” offshore exchanges, which can 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” 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 endure stronger monetary critiques. The
standards for Digital Asset Service Supplier (VASP) registration can be
widened. Folks with data of drug or tax crimes can 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 stop funds from being moved
throughout investigations.
Officers intention to finalize the framework within the first half of
2026. Lawmakers will evaluation the proposed authorized modifications. The federal government will
additionally increase cooperation with worldwide our bodies, together with the Monetary
Motion Job Power.
This text was written by Tareq Sikder at www.financemagnates.com.
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