South Korea Intensifies Crypto Oversight: "Travel Rule" Expanded to Smaller Transactions

South Korea's Financial Services Commission (FSC) is strengthening its cryptocurrency regulations to combat money laundering, a move that is expected to impact market liquidity and international crypto interactions.

On November 28th, FSC Chairman Lee Eok-won announced the expansion of the "travel rule," also known as the "cryptocurrency real-name system," during the Anti-Money Laundering Day ceremony.

Key Regulatory Changes:

• Expanded Travel Rule Scope: The biggest change is extending the travel rule's scrutiny to include cryptocurrency transactions below 1 million won (approximately US$680).
• Targeting Illicit Activity: The measures are designed to intensify efforts against financial crimes and foster a more transparent trading environment.
• High-Risk Exchange Bans: The new rules include prohibitions on transactions with high-risk overseas exchanges.
• Comprehensive Review: There will be a thorough review of the financial and criminal profiles of crypto business stakeholders.

Chairman Lee Eok-won confirmed the expansion, stating, "the 'travel rule' or 'cryptocurrency real-name system' will be expanded to cover cryptocurrency transactions below 1 million won."

Market Impact:

Market analysts anticipate that the stricter compliance requirements, particularly the curbs on cross-border transactions, may lead to a decrease in cross-border liquidity. South Korean regulators view these rigorous measures as a necessary step to align the country's virtual asset oversight with international standards.

November 2025, Cryptoniteuae