South Korea will tighten transfers between domestic crypto platforms and overseas exchanges or self-hosted wallets under anti-money laundering rules approved by the Cabinet on Aug. 11. Summary South Korea approved new risk-based controls for transfers to overseas exchanges and self-hosted wallets Tuesday. Transfers worth 10 million won or more require exchanges to operate internal suspicious-transaction monitoring systems. Low-risk overseas exchanges remain permitted, while high-risk counterparties can be barred from such transfers altogether. Travel Rule data will cover every transfer between registered Korean VASPs after the threshold disappears. Google requires crypto exchange apps targeting South Korea to show successful local VASP registration status. The Financial Services Commission said registered virtual asset service providers will have to apply risk-based controls to such transfers and operate internal suspicious-transaction monitoring for amounts of 10 million won or more. The final framework is less rigid than a March proposal that would have treated every transfer above 10 million won to an overseas exchange or personal wallet as automatically suspicious. After industry objections, the FIU shifted to a system in which each registered provider assesses risk under its own controls rather than filing a suspicious transaction report solely because the amount crosses the threshold. South Korea will grade overseas crypto transfers by risk Under the approved framework, transfers to low-risk overseas exchanges may proceed. Transfers involving other overseas exchanges or self-hosted wallets will generally be permitted only when the sender and recipient are the same person, while transfers involving high-risk counterparties can be prohibited, according to the FSC. The rules also strengthen checks around larger transfers. News1 reported that domestic exchanges may seek additional evidence such as proof that an overseas account belongs to the customer, the purpose of a transfer or the source of funds when a transaction presents elevated risk. The FSC has not published a universal document checklist requiring those items for every transfer. South Korea Tightens Crypto Transfers After Bybit, MEXC and HTX Apps Pulled From Google PlaySouth Korea is tightening transfers to offshore crypto platforms after Bybit, MEXC and HTX apps were removed from local Google Play. Under revised rules, exchanges may require proof of… pic.twitter.com/mXEmfXwqzK— Wu Blockchain (@WuBlockchain) August 13, 2026 As previously reported, South Korea scrapped its 1 million won Travel Rule threshold for transfers between registered domestic VASPs. The amended rules will require identifying information to accompany every such transfer regardless of size. Receiving providers must also obtain the required information and may request missing data or reject a transfer when it cannot be verified. Google Play restrictions have already narrowed offshore access The tighter transfer regime arrives after Android access to several overseas exchanges became more difficult. Google requires developers of crypto exchanges and software wallets targeting South Korea to have successfully filed a VASP report with the Korea Financial Intelligence Unit. As previously reported, at least 29 overseas exchange apps became unavailable on the Korean Google Play Store during July, including Bybit and MEXC. Bybit remained unavailable as of July 28, while OKX returned after a four-day suspension. The app-store restrictions are separate from the Aug. 11 transfer amendments and reflect Google Play’s VASP policy. South Korean regulators have also been pursuing unregistered operators directly. As previously reported, the FIU referred about 40 unregistered crypto businesses to law enforcement and warned registered firms against dealing with unreported providers. The regulator has also asked app marketplaces and communications authorities to restrict access to services it identifies as operating illegally in the country. The new transfer checks will not take effect immediately The crypto transfer provisions do not start on Aug. 20, when separate amendments covering VASP registration reviews and other matters become effective. The FSC said the Travel Rule expansion and overseas-transfer AML requirements will take effect six months after the revised decree is promulgated, with related supervisory rules scheduled to begin at the same time. That timing gives domestic exchanges time to build risk classifications, monitoring procedures and verification processes. It also means users should not assume that every 10 million won transfer will automatically be blocked or reported. The final rule requires a monitoring framework, while the treatment of individual transactions will depend on counterparty risk and the provider’s assessment. An unnamed domestic industry official told News1 that excessively restrictive rules could “lead to an increase only in peer-to-peer trading or transactions conducted through unofficial channels.” That is an industry concern rather than an established outcome. Regulators say the new framework is intended to address money laundering risks around overseas platforms and self-hosted wallets while allowing lower-risk transactions.
