Regulatory Alerts2026-08-11 | 87500Added
Approved Revision to VASP Registration and Anti-Money Laundering Requirements
The government approved a revision to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information, imposing stricter registration requirements and enhanced anti-money laundering duties on virtual asset service providers (VASPs). VASPs must maintain a debt ratio of 200 percent or below, have no defaults in the past three years, and meet specific cybersecurity and internal control standards. The travel rule for virtual asset transfers is expanded to apply to all transaction amounts between registered VASPs, requiring both originators and beneficiaries to secure information. Transfers to overseas entities are permitted under certain conditions, but transfers of KRW10 million or more to overseas VASPs or digital wallet service providers must be reported to the Korea Financial Intelligence Unit (KoFIU). These updated rules take effect from August 20, 2026, with other changes becoming effective six months after promulgation.