South Korea Eliminates Travel Rule Threshold, Imposes 200% Debt Cap on Exchanges

South Korea’s FIU approves stricter crypto rules: zero-threshold Travel Rule, 200% debt limit for exchanges, and rigorous shareholder vetting. Implementation begins August 20.

Woofun AI reports that South Korea's Financial Intelligence Unit confirmed the National Council approved amendments to the Enforcement Order of the Special Financial Information Act. The updated regulations mandate stricter qualification reviews for major exchange shareholders and cap exchange debt ratios at 200%.

The Travel Rule now applies to all transfers, removing the previous 1 million won threshold, while differentiated controls address overseas exchanges and individual wallets based on risk. Exchanges must secure professional staff, necessary equipment, and internal control systems, with a one-year grace period for existing entities. Certain provisions take effect on August 20, while Travel Rule measures commence after six months.