Why complex DeFi and NFT portfolios need crypto tax professionals

South Korea will expand its crypto Travel Rule to all transfers between registered virtual asset service providers (VASPs), removing the current 1 million won (about $700) threshold.The country’s Cabinet approved amendments to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information on Tuesday.Under the changes, the Travel Rule will apply to all transfers between registered crypto service providers regardless of value. Receiving platforms will also be required to obtain sender and recipient information and may request missing information or reject transactions when required data is unavailable.Removing the threshold is intended to prevent users from circumventing the rule by splitting transfers into smaller amounts, according to the Financial Intelligence Unit. It cited one case in which a user bought Tether USDt (USDT) after depositing about 200 million won into a crypto exchange and then made 216 withdrawals, each worth less than 1 million won.Related: South Korea plans stablecoin rules as opposition pushes crypto tax repealSouth Korea tightens rules for overseas exchanges, personal walletsThe amendments also introduce new Anti-Money Laundering (AML) requirements for transfers involving overseas crypto exchanges and personal wallets.Registered local VASPs will be required to determine which transfers they allow based on the risk posed by the counterparty. Transfers to low-risk overseas exchanges will be permitted, while transfers involving other foreign exchanges and personal wallets will generally be allowed when the sender and recipient are the same person.However, transactions involving counterparties deemed high risk will be prohibited.Crypto platforms will also have to establish their own suspicious transaction monitoring systems for transfers worth at least 10 million won involving foreign exchanges or personal wallets.South Korean authorities said suspected money laundering involving overseas exchanges and personal wallets has increased as gaps in existing AML rules governing such transfers have been exploited.The decree also strengthens registration requirements for crypto service providers, including financial health, internal controls, staffing and infrastructure standards, while expanding scrutiny of major shareholders.The VASP registration provisions will take effect on Aug. 20, although existing providers will have an additional year to comply with some financial, staffing, infrastructure and internal control requirements. The expanded Travel Rule and other transfer-related AML requirements will take effect six months after the decree is promulgated.Asia Express: Thailand’s 0% crypto tax. Bitcoin Red Team forced to use Chinese AI