LATEST: 🇰🇷 South Korea is extending its crypto Travel Rule to include transactions under 1 million won, roughly $680, closing a loophole where users could split transfers into smaller amounts to avoid reporting requirements. https://t.co/KniiPz3BMa ...

South Korea plans a major AML overhaul, expanding the Travel Rule to all crypto transfers, including those under 1 million KRW, to stop “smurfing” via small transactions. Regulators will also block high-risk overseas platforms, tighten financial requirements for local exchanges, and ban individuals with drug or tax-crime records from becoming major shareholders. The FIU will gain pre-freeze authority to stop illicit funds before they leave the system. https://t.co/BM5wnbAlMO ...

Core Insights - Bithumb, South Korea's second-largest crypto exchange, is shutting down its USDT market and order-book-sharing with Stellar Exchange due to regulatory scrutiny over anti-money laundering controls [1][2] Regulatory Investigation - The Korea Financial Intelligence Unit (FIU) initiated an on-site investigation at Bithumb on October 1, 2025, focusing on potential loopholes in anti-money laundering protocols related to order-book sharing [2][3] - The investigation examined weaknesses in Know Your Customer (KYC) procedures and compliance with the Travel Rule, particularly concerning partnerships with overseas exchanges [2][3] Partnership with Stellar Exchange - Bithumb announced its USDT market beta on September 22, 2025, in collaboration with Stellar Exchange to enhance liquidity through order book sharing [4] - Concerns arose regarding oversight when it was revealed that BingX staff were working at Bithumb's Seoul headquarters, raising questions about regulatory compliance [5] Compliance Challenges - South Korea enforces strict regulations under the Act on the Protection of Virtual Asset Users, which includes asset management, customer protection, and transaction monitoring [6] - Authorities are worried that cross-border partnerships may complicate compliance with anti-money laundering and KYC enforcement [6] Impact on Users - All outstanding USDT market orders on Bithumb will be canceled, and API services related to the market will be suspended, although the affected cryptocurrencies remain tradable in Korean Won [7] - Bithumb stated that the closure aims to provide a more stable trading environment through system improvements, with updates on any potential reopening to be communicated later [8]

Circle has joined the @binance-led Global Travel Rule (GTR) Network, expanding our support for FATF-aligned digital asset transfers.Circle reinforces its commitment to compliance-first infrastructure for regulated institutions by adopting a multi-network approach to travel rule compliance.https://t.co/qVS6Z9KCKq ...