South Korea removes crypto transfer reporting floor

South Korea has decided to eliminate the 1 million won threshold for reporting cryptocurrency transfers under its Travel Rule. This rule requires virtual asset businesses to share sender and recipient information for all transactions, regardless of size, as part of efforts to combat money laundering. The Cabinet approved the changes on Tuesday, August 11, with the expanded rule set to take effect on February 20, 2027, providing businesses six months to prepare their compliance systems.

This move closes an exemption for transfers below 1 million won, which is roughly $700 at current exchange rates. The revised rule applies to transfers between domestic virtual asset service providers, or VASPs, regardless of their monetary value. South Korean authorities claim that transaction thresholds can be exploited by criminals dividing large transfers into numerous smaller payments, a practice known as smurfing or structuring, which makes individual transactions appear insignificant while allowing substantial sums to move across platforms.