According to Woofun AI news, the South‑Korean government approved amendments to the Act on Reporting and Using Specified Financial Transaction Information on Tuesday. The core revision extends travel‑rule obligations to every transfer between virtual‑asset service providers and scraps the former monetary threshold. This policy shift marks a landmark move in South‑Korean crypto‑asset regulation. It adopts comprehensive transaction‑tracking systems to patch structural loopholes inside anti‑money‑laundering frameworks, so all capital flows, large or small, fall under regulatory oversight.

The reform targets evasion tactics that split funds into tiny‑value transfers. Previously, transactions under one‑million‑KRW (around 700 USD) were exempted from travel‑rule requirements and brought substantial money‑laundering risks. One case disclosed by the Korean Financial Intelligence Unit showed a user deposited 200‑million‑KRW to purchase USDT, then spread the funds across 216 sub‑threshold withdrawals to evade surveillance. To close the loophole, the new regulation cancels the 1‑million‑KRW exemption and imposes stricter AML standards on transfers heading toward overseas crypto‑exchanges and self‑hosted wallets.