South Korea's FIU proposes to expand the scope of application of the TravelRule for small transactions on virtual assets

According to DigitalAsset, South Korea's Financial Intelligence Agency (FIU) proposed at the FATF plenary meeting to expand the scope of application of the TravelRule for small transactions of virtual assets and recommended trading restrictions for high-risk unregistered virtual asset service providers. The South Korean delegation emphasized that as the risk of money laundering in cross-border digital asset transactions expands, Member States should apply the TravelRule to both senders and recipients of VASPs, and expand the scope of application to small transactions. In response to the increase in cases of criminal organizations using overseas and unregistered VASPs, South Korea recommends strengthening customer identity verification obligations and considering imposing transaction restrictions on high-risk unregistered VASPs. FIU has previously promoted similar regulatory measures in the amendment to the enforcement order of the Specific Financial Information Law, which is scheduled to come into effect in August, expanding the scope of application of TravelRule from more than 1 million won to less than 1 million won.