South Korea Tightens Crypto Rules for Transfers Under $680

South Korea is intensifying its anti-money laundering rules following the 2021 update to the Special Financial Information Act.

The Financial Services Commission plans to apply the crypto Travel Rule to all transfers, including those under 1 million won ($680), to prevent identity evasion through smaller transactions.
Exchanges will be required to collect and share sender and receiver data for all transactions.
This move is in response to increased cases of tax evasion, drug deals, and overseas payment schemes involving crypto.

Stricter Measures for Exchanges and High-Risk Platforms

Offshore exchanges considered high-risk will be blocked from serving South Koreans.
Local exchanges must pass stringent financial checks to maintain registration.
Individuals with drug or tax-related criminal records are barred from major shareholding in regulated crypto companies.
The FIU will introduce quick account-freeze powers to prevent funds from disappearing during investigations. The complete regulations should be ready by the first half of 2026 before being reviewed by the National Assembly.

Naver Financial is considering acquiring Dunamu, the company behind [Upbit](https://holder.io/coins/usdt/), in a deal exceeding $10 billion, potentially merging the top payments firm with the largest crypto exchange in South Korea.
Dunamu has announced plans for a won-backed stablecoin and a layer-2 network focused on payments.
A significant corruption case involves police officers taking bribes from illegal exchange operators who allegedly laundered around $186 million through fake gift-certificate shops, converting funds into [USDT](https://holder.io/coins/usdt/).
Investigators have frozen approximately $1.1 million but suspect higher total profits.