South Korea tightens crypto transfers to overseas exchanges
South Korea will tighten transfers between domestic crypto platforms and overseas exchanges or self-hosted wallets under anti-money laundering rules approved by the Cabinet on Aug. 11. The Financial Services Commission said registered virtual asset service providers will have to apply risk-based controls to such transfers and operate internal suspicious-transaction monitoring for amounts of 10 million won or more. The final framework is less rigid than a March proposal that would have treated every transfer above 10 million won to an overseas exchange or personal wallet as automatically suspicious. After industry objections, the FIU shifted to a system in which each registered provider assesses risk under its own controls rather than filing a suspicious transaction report solely because the amount crosses the threshold. South Korea will grade overseas crypto transfers by risk Under the approved framework, transfers to low-risk overseas exchanges may proceed. Transfers involving other overseas exchanges or self-hosted wallets will generally be permitted only when the sender and recipient are the same person, while transfers involving high-risk counterparties can be prohibited, according to the FSC. The rules also strengthen checks around larger transfers. News1 reported that domestic exchanges may seek additional evidence such as proof that an overseas account belongs to the customer, the