Korean crytocurrency exchanges begin to enforce Travel Rule

Cryptocurrency exchange Upbit will begin to comply with the Travel Rule from March 25. South Korean users will only be allowed to make withdrawals to wallets hosted by registered domestic virtual asset service providers.

On February 24th, Upbit sent a notice to all their clients on the upcoming Travel Rule implementation.

The Travel Rule is a system in which virtual asset service providers (VASPs) collect and track the identity information of the sender and recipient. Cryptocurrency transactions exceeding a threshold of 1 million Korea won will be reported to the financial authorities.

Upbit said it has plans to allow deposit and withdrawals to foreign exchanges that comply with the Travel Rule. The company has also not released details on which domestic exchanges are currently supported.

Direct withdrawals to foreign subsidiaries of Upbit are also currently suspended.