Per Woofun AI, the Financial Intelligence Unit (FIU) of South Korea proposed at the FATF plenary meeting to expand the applicability of the virtual asset Travel Rule to small transactions and suggested implementing transaction restrictions on high-risk unregistered virtual asset service providers. The South Korean delegation emphasized that as the money laundering risks associated with cross-border digital asset transactions increase, member countries should apply the Travel Rule to both sending and receiving VASPs and expand its applicability to small transactions.

In response to the increasing cases of criminal organizations utilizing overseas and unregistered VASPs, South Korea recommended strengthening customer identification obligations and considering transaction restrictions on high-risk unregistered VASPs. The FIU had previously advanced similar regulatory measures in the amendment to the enforcement decree of the Specific Financial Information Act, which is planned to be implemented in August, expanding the applicability of the Travel Rule from transactions over 1 million won to those under 1 million won.