South Korean authorities have tightened measures to combat money laundering through crypto assets

South Korea's Financial Services Commission (FSC) has adopted new measures aimed at combating money laundering through crypto assets. These changes include expanding the so-called "Travel Rule" to cover crypto transactions and introducing restrictions on individuals with criminal records seeking to become major shareholders in crypto companies.

Expansion of the "Travel Rule"

FSC Chairman Lee Eok-won stated that the new rules are aimed at enhancing market security and preventing money laundering using virtual assets. The "Travel Rule," which requires the disclosure of sender and recipient information for cross-border transfers, will now apply to transactions of 1 million won (approximately $680). This means that all crypto transactions above this amount will be required to include the necessary information about the parties to the transaction.

Restrictions for Crypto Company Shareholders

Furthermore, the new measures impose restrictions on participation in crypto company equity for individuals with criminal records related to drug offenses and tax evasion. This decision is aimed at minimizing the risks associated with potential abuses in the cryptocurrency space.

Lee Yeok-won emphasized that money laundering activities involving virtual assets will be strictly suppressed. In particular, transactions with virtual assets on foreign exchanges, which pose a high risk of money laundering, will be prohibited.

Call for the Launch of Spot ETFs

Earlier, Kim Sang-hoon, Chairman of the Political Committee of South Korea's ruling People's Power Party, called on regulators to promptly allow the launch of spot exchange-traded funds (ETFs) linked to Bitcoin. This proposal highlights the growing interest in cryptocurrencies and the need to create a more secure and regulated investment environment.

In Conclusion

Thus, the new measures adopted by the FSC are aimed at strengthening oversight of the cryptocurrency market in South Korea and combating money laundering. Tighter rules and restrictions for shareholders of crypto companies could contribute to the creation of a more transparent and secure ecosystem for investors and users of virtual assets.