South Korea

South Korea Throws Travel Rule Private Wallet Compliance to Exchanges

With the Financial Action Task Force (FATF) travel rule going into effect on Friday, South Korea’s financial watchdog has passed on the compliance of private cryptocurrency wallets to exchanges.

See related articles: FATF Updates Crypto Industry Regulatory Guidelines

Quick Facts

  • “The Travel Rule only regulates transactions between individuals. There are no regulations on transferring funds into individual wallets. Each company can apply the (Travel Rule) autonomously,” South Korea’s Financial Intelligence Unit (FIU) told throw away.
  • The rule has sparked concerns among local investors who are concerned about limiting opportunities to transfer cryptocurrencies to private wallets or foreign exchanges.
  • Local exchanges have introduced different rules for users when trading with e-wallets and forex, which has caused confusion among users.
  • The FATF Travel Rule is a set of guidelines developed by the FATF that requires cryptocurrency service providers to collect and disclose information on parties involved in transactions worth more than $1,000.
  • South Korea has made the FATF guidelines a requirement for all transactions above 1 million won ($820).

See related articles: South Korean bourses brace for Friday’s travel rule arrival

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