South Korea's FIU Proposes Expanding Travel Rule to Small-Value Transactions on June 22

According to Digital Asset, South Korea's Financial Intelligence Unit (FIU) proposed at an FATF plenary session on June 22 to expand the Virtual Asset Travel Rule to cover small-value transactions and impose transaction restrictions on high-risk unregistered VASP providers. The Korean delegation emphasized that member states should apply Travel Rule requirements to both sending and receiving VASPs, extending coverage below the current 1 million Korean won threshold. The FIU also recommended strengthening customer identification obligations and restricting transactions with offshore and unregistered VASPs to counter increased misuse by criminal organizations. Aligned measures are scheduled for implementation in August through amendments to South Korea's Specific Financial Information Act.
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