South Korea Proposes Expanding Crypto Travel Rule and Restricting High-Risk VASP at FATF Summit

According to the Financial Intelligence Unit (FIU) statement on June 22, South Korea proposed expanding the application of travel rules for virtual assets and restricting transactions with high-risk unregistered VASPs (virtual asset service providers) at the 34th FATF plenary session held June 15–19 in Paris.

The FIU urged FATF member states to extend travel rule compliance to all cross-border digital asset transactions, including transfers below 1 million Korean won, and to strengthen customer due diligence for unregistered and offshore VASPs. South Korea will implement these measures through amendments to its specific financial information law scheduled for August 2026, which expand travel rule requirements below the previous 1 million won threshold and impose anti-money laundering obligations on overseas exchange transfers.