Korea Tightens Control Over Virtual Assets: New Travel Rules

HappyMinerUncle · 2026-02-15T04:06:01+00:00

South Korea plans to expand its monitoring of cross-border digital asset transactions by lowering the reporting threshold from 1 million won to a lower limit. This change aims to enhance oversight, combat money laundering, and support financial innovation while fostering a secure environment for digital transformation.

HappyMinerUncle

2026-02-15 04:06:01

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South Korea’s Financial Services Commission has announced plans to expand the oversight mechanism for cross-border digital asset transactions. The main change will involve adjusting the threshold level—authorities intend to lower the minimum amount for monitored transactions from 1 million won (approximately $680 USD) to a lower level. This move will enable Korea to cover a greater number of virtual asset operations for more effective monitoring.

Lowering the Tracking Threshold

The new travel rule requires the mandatory transfer of sender and receiver information for each transaction. Reducing the threshold means that even smaller virtual asset transactions will come under supervision. This will allow Korean financial authorities to obtain more detailed information about digital asset movements and to detect suspicious activities in a timely manner.

Combating Money Laundering and Cross-Border Crime

Tighter controls are directly related to efforts against money laundering and illegal financing. Cross-border crimes increasingly use cryptocurrencies as tools to conceal the origin of funds, so Korea is taking proactive measures. Expanding the travel rule mechanism will help identify and prevent illegal virtual asset flows at earlier stages.

Balancing Oversight and Digital Innovation

Along with strengthening measures against financial crimes, Korea’s Financial Services Commission actively supports the digital transformation of the financial sector. The agency is focusing on developing artificial intelligence and modern technological solutions. Improved data integration and the development of advanced regulatory frameworks aim to create a favorable environment for technological innovations in finance, including the cryptocurrency segment.

Thus, Korea aims to create an ecosystem where strict financial oversight coexists with support for innovation. This dual approach reflects regulators’ goal to make the country attractive both for protecting against financial crimes and for developing cutting-edge financial technologies.

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