South Korea to Tighten Crypto Monitoring on Transfers Underneath 1 Million Received — New Guidelines Imminent

South Korea is making ready to tighten oversight of cryptocurrency transfers under 1 million received, closing a niche that regulators say has more and more been used to maneuver illicit funds with out triggering identification checks.

The transfer would broaden the nation’s so-called journey rule, which presently applies primarily to bigger transactions.

The plan is being reviewed by monetary authorities following the launch of a activity power led by the Korea Monetary Intelligence Unit (FIU) to revise the Act on Reporting and Utilizing Specified Monetary Transaction Info, also known as the Particular Act.

Regulators Flip Consideration to Small Crypto Funds as Smurfing Grows

Based on native media experiences, officers are analyzing whether or not to require exchanges to gather and share sender and recipient data for all digital asset transfers, together with these price 1 million received or much less.

The journey rule, generally described as a real-name system for crypto, obliges exchanges to confirm and document person particulars reminiscent of names and pockets addresses throughout deposits and withdrawals.

Authorities have pointed to the rising use of “smurfing,” a technique wherein giant sums are damaged into many small transfers to keep away from reporting thresholds.

Whereas higher-value transfers have lengthy been monitored, officers imagine criminals have shifted exercise towards low-value transactions to bypass current controls.

Monetary authorities have linked these patterns to tax evasion, drug trafficking, and the motion of unlawful funds abroad.

On November 29, the primary assembly of the FIU activity power, which is headed by the Director Lee Hyeong-ju, was held to chart its broader reforms.

The main focus of the talk is on tightening management over the digital asset service suppliers, harmonizing the home laws with the worldwide rules of the Monetary Motion Job Power, and enhancing the inspection and sanctioning mechanisms.

Authorities as effectively have admitted that the anti-money laundering regime, which was instituted over 20 years in the past in South Korea, has not been maintaining with cross-border digital crime and the booming digital assets.

South Korea Strikes to Freeze Suspicious Crypto Accounts

Past the journey rule growth, the duty power is contemplating extra measures aimed toward stopping funds from disappearing earlier than investigations can start.

This consists of introducing an account suspension system that will permit authorities to quickly freeze accounts suspected of being tied to critical crimes.

The proposed revisions would additionally prolong anti-money laundering obligations to sure professionals, reminiscent of legal professionals and accountants, who could also be concerned in complicated monetary transactions.

The crackdown on small transfers is part of a broader enhance in crypto regulation that’s already taking place.

Native exchanges have been suggested by the Monetary Supervisory Service to ascertain round the clock monitoring techniques to establish irregular buying and selling and report the suspicious exercise to the regulators.

South Korea has acted equally and restricted entry to worldwide transactions thought of to be excessive danger, forcing main utility shops to delete unregistered international apps that cater to the Korean market.

Concurrently, exchanges are below much less examination of their monetary wellness and proprietorship varieties.

Proposed guidelines would bar people with previous convictions for tax or drug-related crimes from turning into main shareholders in licensed crypto corporations.

From the second half of 2025, companies concerned in cross-border crypto transactions will even be required to preregister and submit common experiences to the Financial institution of Korea.

These home steps are unfolding alongside South Korea’s participation in worldwide data-sharing efforts.

The nation has joined the OECD’s Crypto-Asset Reporting Framework, which is able to allow tax authorities to alternate standardized data on crypto transactions throughout borders.

Transaction information are anticipated to start being collected subsequent yr, with full data sharing scheduled to start out in 2027.

The publish South Korea to Tighten Crypto Monitoring on Transfers Underneath 1 Million Received — New Guidelines Imminent appeared first on Cryptonews.