South Korea Strengthens Crypto Asset Regulation: Expands Scope of Major Shareholder Review, Abolishes Million Threshold for Travel Rule

TechFlow reports, on August 11, the South Korean State Council passed the Amendment to the Enforcement Decree of the Specific Financial Information Act, expanding the crypto asset Travel Rule from currently applying only to transfers above 1 million KRW to all transfers to prevent splitting transactions to evade regulation. The new regulations also tighten VASP access, expand the scope of major shareholder scrutiny, and add financial requirements such as a debt ratio not exceeding 200%; transfers with overseas exchanges and personal wallets will be managed differentially based on risk levels, and high-risk transactions may be prohibited. Travel Rule and other relevant regulations will be implemented six months after announcement.