South Korea Tightens AML Rules, Targets Small Crypto Transfers
The government’s revamped AML regime narrows thresholds for reporting and expands authorities’ power to freeze assets before formal charges, with a specific focus on small, rapid crypto transfers often used to layer illicit funds. New provisions bar individuals and entities found in violation from owning or running virtual asset service providers (VASPs), signalling tougher licensing and oversight for exchanges, custodians, and payment services.
Regulators say the changes are meant to close gaps used by criminals and improve cross‑border enforcement, but industry groups warn of higher compliance costs and reduced access for informal remittance and peer‑to‑peer users. Market participants and privacy advocates will watch enforcement closely — intensified monitoring and preemptive freezes could dampen liquidity in some sectors while pushing more activity to decentralized or offshore venues.