Korea removed the 1 million won threshold for encryption of Travel Rule and extended it to all transfers

On August 11, the Korean Council of State passed amendments to the Enforcement Decree of the Specific Financial Information Act to extend the transfer of encrypted assets, Travel Rule, from the current one million won and above, to all transfers to prevent the diversion of transactions from circumventing regulation. At the same time, the new regulations tighten VASP access, expand the scope of the review of large shareholders and add additional financial requirements such as 200 per cent of the liability rate; transfers to overseas exchanges and individual wallets will be managed differently by risk class and high-risk transactions may be prohibited. Provisions such as Travel Rule will be implemented six months after publication。