South Korea Expands Crypto AML Rules to Cover Small Transactions
South Korea is tightening anti-money laundering (AML) regulations for cryptocurrency transactions, extending the Travel Rule to include transfers under one million won ($680). Previously, this rule only applied to larger transactions. The move targets 'smurfing'—a tactic where illicit funds are split into smaller amounts to evade detection.
The Financial Intelligence Unit (FIU) now has authority to freeze suspicious accounts preemptively, preventing funds from exiting the system during investigations. Local exchanges face stricter financial checks and must collect sender/recipient data for all transfers, closing a loophole used by criminals.
High-risk overseas platforms are being blocked, reflecting growing concerns about crypto's role in money laundering. 'This isn’t just compliance—it’s a systemic overhaul,' said a regulatory official familiar with the changes.
