South Korea Implements Stricter AML Regulations for Cryptocurrency Transactions Under $680

South Korea has intensified its anti-money laundering (AML) framework with comprehensive new regulations targeting cryptocurrency transactions valued below approximately $680. The overhaul mandates enhanced reporting protocols for virtual asset service providers (VASPs), requiring detailed documentation of all transfers to curb illicit financial activities. Authorities now possess the authority to preemptively freeze assets suspected of involvement in money laundering or other financial crimes, enabling quicker intervention against suspicious transactions. Additionally, individuals convicted of AML violations will face stringent penalties, including permanent bans from operating or holding ownership stakes in VASPs. This move aims to align the digital asset sector with global financial security standards, addressing concerns over the potential misuse of cryptocurrencies for illegal purposes. Financial regulators emphasize that these measures will foster a more transparent and secure ecosystem, bolstering investor confidence while mitigating risks associated with unmonitored crypto flows. The policy reflects South Korea’s proactive stance in regulating emerging financial technologies, ensuring compliance without stifling innovation in the rapidly evolving market.