South Korea is set to scrap the crypto Travel Rule transaction threshold, and now even transfers as small as $10 will require identity checks?
The Korea FIU officially proposed at the FATF meeting to eliminate the minimum transaction threshold for the Travel Rule. This means all crypto transfers will need to verify the identities of both the sender and receiver. South Korea is already geared up for this change, expected to take effect in August, wiping the current threshold of 1 million KRW clean. Previously, exchanges were worried about the high costs, but it eventually shifted to a risk-based approach where operators set their own standards. The FATF itself admits that the global compliance situation for crypto AML isn't very optimistic, and places with high trading volumes often have the loosest regulations. If this proposal is followed by FATF members, global exchanges will have to conduct KYC for every tiny trade, and compliance costs are expected to double. For users, the transfer process might become longer and more cumbersome. However, on the flip side, the old trick of splitting transfers to evade scrutiny seems to be blocked now. #Crypto #Regulation #TravelRule
#Crypto #TravelRule
The Korea FIU officially proposed at the FATF meeting to eliminate the minimum transaction threshold for the Travel Rule. This means all crypto transfers will need to verify the identities of both the sender and receiver. South Korea is already geared up for this change, expected to take effect in August, wiping the current threshold of 1 million KRW clean. Previously, exchanges were worried about the high costs, but it eventually shifted to a risk-based approach where operators set their own standards. The FATF itself admits that the global compliance situation for crypto AML isn't very optimistic, and places with high trading volumes often have the loosest regulations. If this proposal is followed by FATF members, global exchanges will have to conduct KYC for every tiny trade, and compliance costs are expected to double. For users, the transfer process might become longer and more cumbersome. However, on the flip side, the old trick of splitting transfers to evade scrutiny seems to be blocked now. #Crypto #Regulation #TravelRule
#Crypto #TravelRule