South Korea Cracks Down on Crypto Regulation: Stricter Exchange Shareholder Reviews, Travel Rule to Cover All Transfers

Odaily News: The Financial Intelligence Unit (FIU) of South Korea has announced that the enforcement decree amendment to the Specific Financial Information Act, aimed at strengthening oversight of the crypto industry, has been approved at a Cabinet meeting. The new rules will tighten scrutiny over the qualifications of major exchange shareholders and require exchanges to maintain a debt-to-equity ratio no higher than 200%. Previously, the Travel Rule applied only to transactions exceeding 1 million KRW, but going forward, it will cover all transfers with no minimum threshold. Transactions involving overseas exchanges and personal wallets will be subject to differentiated oversight based on risk levels. The new rules also require exchanges to designate qualified personnel, equip themselves with necessary infrastructure, and establish internal control systems, with existing exchanges granted a one-year grace period. Some provisions will take effect on August 20, while measures including the Travel Rule will be formally implemented six months later.