South Korea tightens crypto transfers to overseas exchanges

South Korea will tighten transfers between domestic crypto platforms and overseas exchanges or self-hosted wallets under anti-money laundering rules approved by the Cabinet on Aug. 11. Summary South Korea approved new risk-based controls for transfers to overseas exchanges and self-hosted wallets Tuesday. Transfers worth 10 million won or more require exchanges to operate internal suspicious-transaction monitoring systems. Low-risk overseas exchanges remain permitted, while high-risk counterparties can be barred from such transfers altogether. Travel Rule data will cover every transfer between registered Korean VASPs after the threshold disappears. Google requires crypto exchange apps targeting South Korea to show successful local VASP registration status. The Financial Services Commission said registered virtual asset service providers will have to apply risk-based controls to such transfers and operate internal suspicious-transaction monitoring for amounts of 10 million won or more. The final framework is less rigid than a March proposal that would have treated every transfer above 10 million won to an overseas exchange or personal wallet as automatically suspicious. After indust...