South Korean cryptocurrency exchanges have met the government’s deadline to comply with the so-called Travel Rule, but not everyone in the business is delighted with the legislation.
Starting today, any crypto transfers worth more than $821 will be flagged by Korean exchanges. User-verified wallets and a small number of exchanges who have accepted their anti-money laundering system will be able to send money over that amount.
The Travel Rule is a series of rules released by the Financial Action Task Force (FATF), an international financial watchdog, to assist authorities in tracking the movement of virtual assets between virtual asset service providers (VASPs), such as crypto exchanges and digital asset issuers.
The regulatory action, according to a source from a local centralized exchange, is a step forward for the country’s crypto business.
Traders in South Korea, which amassed $45.8 billion in crypto market value in 2021, may have difficulty determining which exchanges they can transfer assets to and from. There are two Travel Rule systems among the top four exchanges (Upbit, Bithumb, Coinone, and Korbit).
Each system works in a slightly different way, and foreign exchanges must adhere to its rules. Transfers will not be permitted if those requirements are not fulfilled.
These disparities, according to Simon Kim, CEO of South Korean crypto VC Hashed, are likely to produce confusion and frustration among domestic traders.
He believes the mandate is “obviously over-regulation” in the Korean crypto ecosystem.
The blockchain ecosystems Klaytn and Ethereum, the NFT game Axie Infinity, and the decentralized exchange dYdX are all part of the Hashed crypto and Web3 portfolio.
Related Posts – Ferrari joins the NFT universe through a collaboration with a Swiss…
