Financial Services Commission "Considering Mandatory Travel Rule for Exchanges and Individual Wallets"

The Financial Services Commission has been revealed to be considering making the Travel Rule mandatory in the process of transferring virtual assets (cryptocurrencies) between domestic virtual asset exchanges, individual wallets, and overseas exchanges. The Travel Rule is a regulation that requires reporting sender and recipient information to financial authorities for transactions of 1 million won or more.

On the 28th (Korea time), according to the industry, Lee Eok-yeon, chairman of the Financial Services Commission, said at a general audit of the National Assembly's Political Affairs Committee the previous day, in response to lawmaker Kim Hyun-jung of the Democratic Party's remark that "there seems to be a problem with the Travel Rule," "I will consider measures to make even voluntary self-regulation mandatory (in relation to the Travel Rule)." He added, "The Travel Rule, under the Act on Reporting and Using Specified Financial Transaction Information, applies only to transfers between domestic exchanges, and as a matter of self-regulation it currently covers overseas exchanges and individual wallets (i.e., they are being regulated now)."