South Korea tightens crypto transfer rules

South Korea is tightening crypto transfer rules, requiring risk assessments, proof of account ownership, and stricter monitoring for large transfers to overseas exchanges.

South Korea is implementing stricter regulations on cryptocurrency transfers to overseas exchanges and personal wallets. This move follows the removal of several foreign crypto exchange apps, including Bybit, OKX, MEXC, and HTX, from the local Google Play Store. Under the new rules, domestic exchanges must assess the risk level of overseas platforms before approving transfers. Users may need to verify account ownership, disclose the purpose and source of funds, and transfers can be delayed or denied if information is insufficient. Transfers of 10 million won or more will face enhanced monitoring and reporting through internal suspicious transaction systems. The previous 1 million won Travel Rule threshold is being removed, and all transfers between registered Korean virtual asset service providers will be covered. These measures aim to strengthen anti-money laundering controls and increase oversight of cross-border crypto transactions. The new rules will take effect six months after their announcement.