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Scope of the Travel Rule

Virtual asset service providers (VASPs) involved in the following business activities must comply with the Travel Rule:

  • The selling or buying of cryptocurrencies;

  • Crypto-to-crypto exchanges;

  • The transferring of cryptocurrencies;

  • The storage or management of virtual assets.

Supervisory body

Financial Services Commission (FSC)

Threshold

KRW 1 million (at press time around CHF 800)

Information to be exchanged

  • Originator's name;

  • Beneficiary's name;

  • Originator's wallet address;

  • Beneficiary's wallet address.

On request of beneficiary VASP or official authorities, the following information will have to be provided within three (3) business days: 

  • Originator's official personal document identity number, 

  • Customer identification number, or 

  • Alien card registration number.

When do you need to comply?

25 March 2022

What else do you need to know?

All VASPs must meet the following requirements:

Submit the company's details (company name, the name of its representative, location of the place of business, and contact information) and its bank account details to the Financial Intelligence Unit.

  • Report large cash transactions (KRW 10 million) (information to be provided includes the name and location of the reporting entity, date and place of payment or receipt of cash; the name of the beneficiary, details of payment or receipt of cash).

  • VASPs are to secure a contract with local banks to provide withdrawal and deposit accounts for their users, under their real names. VASP owners who do not have an authorised bank account will be liable to pay a fine or face 5-year imprisonment.

Applicable regulation

Act on the reporting and use of specific financial transactions information

Enforcement Decree of the Act on the Reporting and Use of Specific Financial Transaction Information

Written by:
Delphine Forma
Delphine Forma
Senior Compliance Manager at BitMEX

Delphine Forma is an experienced compliance officer who worked across different industries including Bank of Tokyo, Mitsubishi UFJ, HSBC Bank, and crypto businesses (exchanges and miners). She holds a diploma from Sciences Po Lyon, and two masters specialising in European Criminal Business Law and Frauds and Money Laundering Prevention. Delphine is a board member of the OpenVASP Association.

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