Crypto Exchanges

Story: South Korea Drops $700 Crypto Transfer Threshold, Forcing 216-Withdrawal Loophole Shut

By Maheen Hernandez

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The 216-Withdrawal Case That Broke the Old Rule. The Financial Intelligence Unit made it pretty clear why the threshold had to go.

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Foreign Exchanges and Personal Wallets Now Under the Microscope. The amendments don't stop at domestic transfers. Registered local VASPs now have to evaluate…

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Tighter Registration Rules for Crypto Platforms. The decree also tightens what it takes to stay registered as a crypto service provider in South…

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South Korea just killed the floor. The Cabinet approved changes to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information — and the…

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Every transfer between registered virtual asset service providers now triggers information-sharing requirements, full stop. Doesn't matter if you're moving 500 won or 500 million.

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The Financial Intelligence Unit made it pretty clear why the threshold had to go. Someone deposited a large sum into a crypto exchange, then pulled it out across 216 separate…

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So the new rules don't give users that option anymore. Platforms can't just wave through small transfers without checking who's sending and who's receiving.

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It's a pretty significant shift. Travel Rule compliance has historically been tied to transaction size thresholds in most jurisdictions — the idea being that small transfers…

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The amendments don't stop at domestic transfers. Registered local VASPs now have to evaluate counterparty risk before allowing any transfer involving a foreign crypto exchange or…

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That's a harder line than most countries have drawn. It puts South Korean platforms in the position of actively gatekeeping which foreign exchanges their users can interact with…

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Read also: CLARITY Act Cloture Vote Puts 60-Vote Threshold at Center of Crypto Regulation Fight

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Transactions with foreign exchanges or personal wallets that hit 10 million won also trigger mandatory suspicious transaction monitoring.

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VASP registration provisions kick in August 20. Existing providers get an extra year to meet some of the compliance standards, which gives them a bit of breathing room — but not…

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That six-month window sounds generous. It probably isn't. Building out counterparty risk evaluation systems, updating transaction monitoring infrastructure, retraining compliance…

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See also: Crypto.com Kills DAT Stock Plan as CRO Drops 70% and Executives Walk

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