South Korea intensifies crackdown on crypto money laundering with new regulatory measures

South Korea is about to significantly tighten its regulatory approach against illegal financing through cryptocurrencies. Lee Eui-kyung, head of the South Korean Financial Services Commission, announced on November 28 during the annual anti-money laundering event at the Financial Intelligence Unit that the country will expand the real-name system (commonly known as the “travel rule”) to include all transactions below the threshold of 1 million Korean won, equivalent to about $680.

Crackdown on Suspicious Transactions

This regulatory change represents a substantial crackdown on virtual asset oversight. South Korea is not stopping at simple identity registration: the government has announced a complete ban on operating with foreign exchanges considered at high risk of money laundering. The measure aims to cut off channels through which illicit capital could flow to less regulated platforms.

Stricter Controls on Owners and Managers

Meanwhile, South Korean authorities will introduce a particularly strict due diligence mechanism. This system will thoroughly examine criminal records, financial positions, and credit ratings of key stakeholders operating in the virtual asset sector. The goal is to identify and neutralize anyone with risk profiles before they can obtain operational licenses.

South Korea thus consolidates its position as a highly regulated crypto market, where transparency and regulatory compliance are not optional but basic conditions for operation.