South Korea’s financial regulator has turned over compliance for private cryptocurrency wallets to exchanges as the Financial Action Task Force (FATF) travel rules come into effect on Friday.
South Korea’s Financial Intelligence Unit (FIU) said the travel rule only regulates transactions between individuals. There are no rules about transferring funds to personal wallets. Each company can apply the travel rule autonomously, which has raised concerns among local investors who are concerned about restrictions on the transfer of cryptocurrencies to private wallets or foreign exchange transactions.
The FATF Travel Rules are a set of guidelines established by the FATF that require crypto service providers to collect and disclose information on parties involved in transactions worth more than $1,000. South Korea has made FATF guidelines a requirement for all transactions over 1 million won ($820).
