South Korea's regulatory crackdown intensifies: Micro-amount crypto transactions will also be included in the identity tracking system

South Korean financial authorities are brewing a major overhaul—by lowering transaction thresholds, more small-scale crypto asset transfers will come under the regulatory framework. This policy focuses on the so-called “Travel Rule” mechanism, commonly known as “Crypto Identity Real-Name System,” which currently only monitors transactions exceeding 1 million Korean won.

The National Financial Intelligence Unit(FIU) recently held a special working group meeting to initiate the revision process of the “Specific Financial Information Act,” marking an important step in system optimization and upgrade. This move aims to improve regulatory standards for virtual asset service providers(VASP) and develop more detailed measures for anti-money laundering efforts.

In addition to lowering the regulatory threshold, South Korea is also planning regulatory schemes for stablecoins and other emerging crypto products. Analysts believe this indicates that South Korea is systematically tightening its crypto asset regulatory network to plug existing loopholes. For exchanges and users, this means increased data transparency requirements and potentially further reduction of privacy in transactions.

As global anti-money laundering compliance pressures continue to rise, South Korea’s initiative also reflects a common trend among financial authorities worldwide to monitor crypto asset flows.