South Korea expands crypto travel rule to all transactions

South Korea expands travel rule to sub-1M won crypto trades, adding bans on high-risk exchanges.

FSC expands travel rule scope

South Korea's Financial Services Commission (FSC) extended the travel rule to cover every virtual asset transaction. This includes transfers under 1 million won (around $680), down from earlier limits. The cryptocurrency real-name system now demands identity verification for all trades. FSC Chairman Lee Eok-won revealed the update on November 28, 2025, during the Anti-Money Laundering Day event. The rule requires virtual asset service providers to share originator and beneficiary information for all transfers.

“The ‘travel rule’ or ‘cryptocurrency real-name system’ will be expanded to cover cryptocurrency transactions below 1 million won.”— Lee Eok-won, Chairman, Financial Services Commission (FSC) of South Korea.

Bans and background checks added

The policy bars dealings with high-risk foreign exchanges. Crypto businesses face full audits of finances and criminal records. These steps target money laundering risks and align with Financial Action Task Force standards. Providers must verify user identities and monitor suspicious activity more closely. No launch date beyond the announcement appeared in the statement. The expansion builds on South Korea's 2021 virtual asset user registration system.

Effects on crypto trading

Traders may see tighter cross-border flows due to the bans. Small transfers now carry more paperwork, potentially slowing retail activity. Local exchanges like Upbit and Bithumb will implement the changes, increasing compliance costs. The rules match global anti-money laundering guidelines. South Korea pushes for safer markets amid rising crypto adoption, where over 10 million citizens hold digital assets. Exchanges report no immediate disruptions planned.