PANews, June 22 – According to Digital Asset, South Korea’s Financial Intelligence Unit (FIU) proposed at the FATF plenary meeting to expand the scope of the Travel Rule to cover small-value virtual asset transactions and recommended imposing transaction restrictions on high-risk unregistered virtual asset service providers. The South Korean delegation stressed that as money laundering risks in cross-border digital asset transactions grow, member states should apply the Travel Rule to both the originating and beneficiary VASPs and extend its scope to small-value transactions. In response to increasing cases of criminal organizations using overseas and unregistered VASPs, South Korea suggested strengthening customer identity verification obligations and considering transaction restrictions on high-risk unregistered VASPs.

The FIU had already been advancing similar regulatory measures in the planned August revision to the enforcement decree of the Act on Reporting and Using Specified Financial Transaction Information, which would expand the Travel Rule’s scope from transactions of 1 million won or more to those below 1 million won.