Korea Cracks Down on Crypto with New Enforcement Rules

Korea's Virtual Asset Enforcement Rules are set to take effect on October 1, 2026. These new rules will significantly impact crypto traders and exchanges in South Korea.

The new regulations include stricter requirements for crypto transactions under the Travel Rule. Previously, transfers under 1 million won (~$730) were exempt from this rule, but now all transactions, regardless of size, will be subject to it.

Exchanges must also collect and verify sender/recipient information for every transfer, which may lead to more KYC friction but cleaner on-chain data. Privacy coins like Monero and Zcash face stricter seizure and custody rules, with the Korean police finalizing guidelines in early 2026 to handle these assets.

Cross-border reporting will also become tighter, with exchanges required to report international transaction details to the Bank of Korea monthly. This includes customer nationality and residence data going to the National Tax Service.