'Anti-Money Laundering' Travel Rule Implemented…Cryptocurrency Exchanges Required to Provide Sender and Receiver Information

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Starting from the 25th, the Travel Rule system to prevent money laundering using virtual currencies will be fully implemented. The Travel Rule means that domestic virtual currency exchanges that have obtained Virtual Asset Service Provider (VASP) status from the Financial Intelligence Unit (FIU) under the Financial Services Commission must mandatorily provide sender and receiver information when transferring virtual currencies.

According to the Financial Services Commission on the 24th, the Travel Rule applies when a virtual asset service provider transfers virtual currency worth 1 million KRW or more to another provider. The provider transferring the virtual currency must provide the name and virtual currency address of the sending and receiving customers to the receiving provider.

Furthermore, if requested by the head of the Financial Intelligence Unit under the Financial Services Commission or the receiving provider, the transferring provider must provide the resident registration number and other information of the customer sending the virtual currency within three business days. Additionally, information on sending and receiving customers collected under the Travel Rule must be retained for five years after the transaction ends, and violations may result in a fine of up to 30 million KRW. Depending on inspection and supervision results, measures such as institutional caution, institutional warning, corrective orders for providers, and disciplinary actions for executives may also be imposed.

The Financial Intelligence Unit plans to closely monitor the implementation and establishment process of the Travel Rule during inspections of virtual asset service providers to promote the establishment of a transparent transaction order.

This content was produced with the assistance of AI translation services.