Financial regulators in South Korea are pushing for broader reporting requirements on crypto transfers to further align with global Anti-Money Laundering standards for digital assets.<\/p>\n
South Korea’s Financial Intelligence Unit (FIU) raised proposals to expand the Financial Action Task Force\u2019s (FATF) Travel Rule requirements to smaller crypto transfers during a plenary meeting in Paris last week, according<\/a> to an announcement on Monday.<\/p>\n The crypto Travel Rule is a global AML standard that requires crypto exchanges to share sender and recipient information for transfers above certain thresholds. It is designed to improve the traceability of funds moving between platforms.<\/p>\n South Korea already applies<\/a> Travel Rule requirements to crypto transfers above 1 million won ($650), and the latest proposal calls for extending those obligations to smaller transactions.<\/p>\n The FIU said Travel Rule obligations should apply to both originating and receiving crypto asset service providers (CASPs) to close gaps in cross-border transfers.<\/p>\n The FIU also called for stronger action against offshore and unregistered crypto platforms, citing increased misuse in illicit finance cases and risks of regulatory arbitrage.<\/p>\n FIU Commissioner Lee Hyung Ju at the FATF plenary session in Paris. Source: FIU<\/em><\/p>\n Beyond the Travel Rule discussion, FATF also approved a new report examining risks associated with decentralized finance (DeFi), according to the FIU.<\/p>\n Related: <\/strong><\/em>South Korea police raid Bithumb over lawmaker hiring favoritism probe: report<\/strong><\/em><\/a><\/p>\n FIU Commissioner Lee Hyung Ju welcomed the adoption of a DeFi-related report during FATF discussions. However, he said regulatory arbitrage across jurisdictions mainly stems from differences in licensing, supervision and offshore oversight.<\/p>\n The proposal was part of broader discussions on the implementation of FATF Recommendation 15, the international standard updated<\/a> in 2019 to apply AML measures to crypto assets and CASPs.<\/p>\n Seven years after FATF extended its AML framework to cover crypto assets, global implementation of Recommendation 15 remains uneven, according<\/a> to a targeted update by FATF in 2025.<\/p>\n Source: FATF<\/em><\/p>\n The FATF assessment found that 49% of jurisdictions were only partially compliant with requirements for CASPs, while 21% remained non-compliant as of April 2025, leaving only about 29% of jurisdictions rated largely compliant or compliant.<\/p>\nOngoing gaps in global oversight and DeFi risks<\/h2>\n
Seven years after FATF extended Travel Rule scope to crypto<\/h2>\n
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