South Korea to tighten VASP registration rules, apply Travel Rule to all transfers

South Korea’s Financial Intelligence Unit said a Cabinet meeting approved revisions to the enforcement decree of the Act on Reporting and Use of Specific Financial Transaction Information, strengthening registration requirements and anti-money laundering obligations for virtual asset service providers, according to Etoday. Under the revised decree, the scope of major shareholders subject to review will be expanded, while operators must maintain a debt ratio of 200% or less and have professional staff as well as security and internal control systems in place. Existing operators will receive a one-year grace period for some requirements. The current 1 million won threshold for the Travel Rule will also be scrapped, extending anti-money laundering obligations to all virtual asset transfers. Transactions involving overseas exchanges and personal wallets will be managed on a differentiated basis according to risk. Provisions related to the registration regime will take effect on Aug. 20, while the Travel Rule changes and other measures will take effect six months after promulgation.