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South Korea to Tighten Crypto Tracking on Transfers Under 1 Million Won
South Korea to Tighten Crypto Tracking on Transfers Under 1 Million Won
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BTCCSquare news:
South Korean regulators are closing a loophole in cryptocurrency oversight by expanding the so-called travel rule to include transactions below 1 million won ($700). The move targets smurfing—a method of breaking large illicit transfers into smaller, untraceable amounts.
The Korea Financial Intelligence Unit (FIU) is leading revisions to the Special Act, which may soon require exchanges to collect sender and recipient data for all VIRTUAL asset transfers, regardless of size. Current rules primarily focus on larger transactions.
This crackdown reflects growing global scrutiny of crypto's role in money laundering. While the measure strengthens compliance, it could increase operational burdens for exchanges handling microtransactions.
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