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<div class="key-points-section">
 Key Points:
 <ul>
 <li>South Korea expands crypto rules to small transactions.</li>
 <li>New AML measures affect all digital assets.</li>
 <li>Regulation increases compliance costs for crypto exchanges.</li>
 </ul>
</div>
South Korea's Financial Services Commission, led by Chairman Lee Eok-won, announced on November 28, 2025, the extension of the crypto Travel Rule to include transactions below 1 million won.
The expansion broadens AML compliance, affecting all cryptocurrencies, and may elevate compliance costs for exchanges while potentially reducing small transaction liquidity and trading volumes.
South Korea has broadened its crypto Travel Rule, applying it now to transactions under 1 million won. This move is part of a continuing effort to enhance anti-money laundering measures in the nation's crypto sector.
The Financial Services Commission, under Chairman Lee Eok-won, announced the changes in late 2025. The revised rule mandates identity verification for all crypto transfers, covering both major and micro transactions.
<blockquote>
 "We are expanding the crypto Travel Rule to ensure all virtual asset transactions under 1 million won are subject to AML compliance measures." - Lee Eok-won, Chairman, Financial Services Commission (FSC), South Korea
</blockquote>
The <a href="https://phemex.com/news/article/south-korean-police-indicted-for-bribery-in-crypto-laundering-case-39999" rel="noopener noreferrer nofollow">crypto industry</a> faces increased compliance costs as exchanges like <a href="https://phemex.com/news/article/bithumb-to-suspend-tether-market-service-amid-regulatory-scrutiny-39820" rel="noopener noreferrer nofollow">Bithumb</a> must upgrade systems. This regulation aims to curb illicit financial flows through more comprehensive oversight.
While larger transactions were previously targeted, the extension now affects all digital assets – from Bitcoin to stablecoins. This is expected to reduce small-scale trading activity given the additional monitoring requirements.
Conforming to international standards, these measures align with the <a href="https://twitter.com/CryptoRank_VCs" rel="noopener noreferrer nofollow">Financial Action Task Force's</a> guidelines. Though immediate on-chain data effects aren't available, the expectation is a decline in cross-border trading.
<blockquote class="twitter-tweet">
 <a href="https://twitter.com/CryptoRank_io" rel="noopener noreferrer nofollow"></a>
</blockquote>
Historically, similar regulations in South Korea reduced illicit activities but increased scrutiny on exchanges. The change could alter market dynamics, affecting liquidity and trading volumes across various crypto assets. <a href="https://marketbit.io/south-korea-crypto-travel-rule-aml/" rel="noopener noreferrer nofollow">Read original article on marketbit.io</a>

South Korea Enforces Crypto Travel Rule on Small Transactions

Marketbit

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