South Korea plans to expand its crypto Travel Rule to cover transactions under 1 million won ($680) in a crackdown on money laundering activities exploiting crypto. Exchanges will be required to collect and share sender and receiver information for transfers under $680 to combat drug trafficking, tax evasion, and overseas schemes.
The new rules aim to stop the increasing use of crypto rails for illegal activities and will also target “high-risk” offshore exchanges. Exchanges will face stricter financial health reviews, and individuals with criminal records involving drugs or tax crimes will be prohibited from becoming major shareholders of VASPs.
The Financial Intelligence Unit (FIU) will introduce pre-emptive account freezing mechanisms for serious offenses, with plans to finalize the new framework by the first half of 2026. The changes represent South Korea’s most comprehensive move to tighten AML regulations since the Special Financial Information Act was updated in 2021.
In a bid to combat tax evasion, South Korea’s National Tax Service (NTS) is prepared to conduct home searches and confiscate cold wallets and hard drives suspected of hiding crypto assets offline to avoid taxes. Tax delinquents will be subject to searches and seizures if suspected of offline concealment.
Read more at Cointelegraph.com
1. Bitcoin hits new all-time high of $60,000, driven by increased institutional investment and growing mainstream acceptance of cryptocurrency. Market cap surpasses $1 trillion, solidifying Bitcoin’s position as a major player in the financial world.
2. Ethereum also sees record highs, reaching $2,000 for the first time as demand for decentralized finance (DeFi) platforms continues to surge. Ethereum’s market cap exceeds $200 billion, making it the second largest cryptocurrency.
3. Elon Musk’s Tesla announces purchase of $1.5 billion worth of Bitcoin and plans to accept the cryptocurrency as payment for its products, sending Bitcoin prices soaring. This move marks a significant endorsement of Bitcoin by a major corporation.: South Korea Expands Travel Rule in Major AML Crackdown