TLDR
- South Korea approved stricter AML rules for transfers to overseas crypto exchanges.
- Transfers of 10 million won or more will face added monitoring and reporting.
- The 1 million won crypto Travel Rule threshold is being removed.
- Bybit and OKX app access has already been restricted on South Korea’s Google Play Store.
- High-risk transfers may require proof of account ownership, transaction purpose or source of funds.
South Korea is tightening rules for crypto transfers to overseas exchanges and personal wallets, adding new checks that could make platforms such as Bybit and OKX harder for local investors to use. The changes come as access to several foreign crypto exchange apps has already been restricted through South Korea’s Google Play Store.
The Cabinet approved amendments to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information on August 11. The Financial Services Commission said the rules strengthen anti-money laundering requirements for virtual asset service providers and expand controls covering transfers to foreign platforms and private wallets.
South Korea Adds New Checks for Overseas Crypto Transfers
Under the revised framework, Korean crypto exchanges must assess overseas platforms based on their risk level before allowing transfers. Transactions to low-risk overseas exchanges can proceed, while transfers involving other foreign exchanges and personal wallets will generally require the sender and recipient to be the same person. High-risk transfers can be prohibited.
Transfers worth 10 million won or more involving an overseas exchange or personal wallet will also face additional monitoring and reporting requirements. The Financial Services Commission said such transactions must be reported to the Korea Financial Intelligence Unit regardless of their risk classification.
Local exchanges may need more information when they cannot clearly identify the recipient or when a transaction involves a higher-risk platform. Investors could therefore face requests to confirm ownership of an overseas exchange account, explain the purpose of a transfer or provide information linked to the source of funds.
Failure to provide the requested information could result in a transfer being delayed or rejected. The overseas-transfer provisions will take effect six months after promulgation, while separate changes covering VASP registration requirements begin on August 20.
Crypto Travel Rule Expands to Transfers of All Sizes
South Korea is also removing the current 1 million won threshold for its crypto Travel Rule. Once the revised rules take effect, registered domestic exchanges must provide sender and recipient information for transfers of all sizes rather than only transactions worth at least 1 million won.
Receiving exchanges will also have a duty to secure information provided by the sender. Regulators designed the change to prevent users from splitting large transfers into smaller transactions to avoid identity-reporting requirements. About 60% of transfers between domestic VASPs were below 1 million won during the second half of 2025 when the changes were proposed.
The new requirements form part of a broader tightening of crypto oversight in South Korea. Bloomberg has also tracked the country’s wider digital-finance regulatory changes as authorities adjust rules covering crypto businesses and financial technology.
Bybit and OKX Users Face Higher Access Barriers
The transfer rules follow tighter access to foreign crypto exchange apps. Bybit, OKX, MEXC and several other overseas platforms became unavailable for new installation through South Korea’s Google Play Store after policy changes linked app distribution to local VASP registration requirements.
Existing users may still access services through previously installed apps or other available channels, but new users face additional steps. Korean traders commonly use overseas platforms for products such as crypto futures that are not available through domestic spot-focused exchanges.
An industry official warned that tighter access could push some activity away from regulated channels, saying that if overseas-exchange demand remains while restrictions increase, “it could lead to an increase only in peer-to-peer trading or transactions conducted through unofficial channels.”
The Korea Financial Intelligence Unit is holding an information session for virtual asset businesses on August 13 to explain the revised requirements.
