South Korea Strengthens Crypto Asset Regulation: Expands Scope of Major Shareholder Review, Abolishes Million Threshold for Travel Rule

The South Korean State Council approved the Amendment to the Enforcement Decree of the Specific Financial Information Act, expanding the crypto asset Travel Rule from currently applying only to transfers above 1 million KRW to all transfers to prevent splitting transactions to evade regulation. The new regulations also tighten VASP admission, expand the scope of major shareholder review, and add new financial requirements such as a debt ratio not exceeding 200%; transfers with overseas exchanges and personal wallets will be managed differentially according to risk levels, and high-risk transactions may be prohibited. The Travel Rule and related regulations will be implemented six months after publication.