The South Korean financial intelligence agency proposes to expand the scope of the Travel Rule and suggests restricting transactions with unregistered service providers

According to Digital Asset, the Financial Intelligence Unit (FIU) of South Korea proposed at the FATF plenary meeting to expand the scope of the virtual asset travel rule for small transactions and suggested implementing transaction restrictions on high-risk unregistered virtual asset service providers. The South Korean delegation proposed that member states should apply the Travel Rule to both remitters and recipients of VASP, and expand its scope of application to small transactions. South Korea suggests strengthening customer identity verification obligations and considering imposing transaction restrictions on high-risk unregistered VASPs.