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South Korea Plans to Extend Crypto Travel Rule to Sub‑₩1 Million Transfers

Officials target a first‑half 2026 framework for lawmakers to consider.

Overview

  • FSC chair Lee Eok‑won outlined plans to require exchanges to collect and share sender and receiver identity data on small transfers to close smurfing loopholes.
  • Access to foreign platforms designated as high risk will be blocked for domestic users, including direct transfers to flagged offshore exchanges.
  • Virtual asset service providers would face tougher financial reviews, with major shareholders or executives barred if they have drug‑ or tax‑crime records.
  • The Financial Intelligence Unit would gain early account‑freezing powers in serious cases to stop funds moving during investigations.
  • Tax authorities plan stronger enforcement, including home searches and seizure of cold wallets and hard drives in suspected crypto tax‑evasion cases.