What is the scope of the Travel Rule in South Korea?
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.
Who is the supervisory body for VASPs in South Korea?
Financial Services Commission (FSC)
What is the Travel Rule threshold in South Korea (FSC)?
KRW 1 million (at press time around EUR 800)
What are the FSC's requirements for Travel Rule 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 with the Travel Rule in South Korea?
25 March 2022
What else do you need to know about the Travel Rule in South Korea?
All VASPs must meet the following requirements:
register with Korean Financial Regulator before they start operating
register an authorised company bank account and provide customers with their real-name accounts with the same bank.
establish expanded AML/KYC procedures using a risk-based approach, which includes customer due diligence and suspicious transaction reporting.
acquire an Information Security Management System (ISMS) certificate at the Korea Internet & Security Agency (KISA).
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.
Which regulations are applicable to the South Korean Travel Rule?
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
