Financial authorities said they will expand the travel rule regulation, aimed at preventing money laundering, from the current over 1 million won to transactions of 1 million won or less. The travel rule, known as the "coin real-name system," requires virtual asset exchanges, when they receive a request to deposit or withdraw virtual currency of 1 million won or more, to collect information such as the sender and receiver's names and wallet addresses.
Chairperson Lee Eog-weon of the Financial Services Commission (FSC) said on the 28th at the Financial Intelligence Unit's (FIU) ceremony for the "19th Anti-Money Laundering Day," "We will crack down on money laundering that abuses virtual asset transactions," adding, "We will expand the travel rule regulation to transactions of 1 million won or less." Lee also said, "We will prevent virtual asset transactions with overseas exchanges that pose high money laundering risks." Lee further said those with criminal records, such as for drugs or tax evasion, will be barred from becoming major shareholders of virtual asset service providers.
The financial authorities will also improve the system so that, in reviewing registrations of virtual asset service providers (VASP), they verify financial condition and social credit requirements. The FIU will introduce a "preemptive account freeze system" to prevent suspected criminal funds from being moved out while authorities are currently investigating. The Financial Services Commission (FSC) plans to announce measures in the first half of next year and submit an amendment to the Act on Reporting and Using Specified Financial Transaction Information to the National Assembly. The FIU's organizational capabilities will also be strengthened so the system can take root early.
International cooperation will also be strengthened to respond to money laundering crimes. Using opportunities such as next year's Minister-level meeting of the Financial Action Task Force (FATF), Korea will establish a cooperation framework with FIUs in Southeast Asia to respond to crime and prepare international cooperation measures to counter international cyber fraud and terror financing. Relevant agencies will also work together so that lawyers, accountants and tax accountants can put anti-money laundering systems in place.