- South Korea wants to widen Travel Rule reporting to lower cryptocurrency transactions.
- FATF adopted a DeFi risk assessment report and called for better regulation of crypto companies globally.
- Toss Bank is going to carry out tests of remittance using Solana and AML/KYC checks in pilot projects.
The regulatory discussions concerning South Korean crypto Travel Rule compliance have begun due to growing attempts of the country’s government to make its regulations concerning digital assets compatible with the international anti-money laundering standards.
Simultaneously, the country’s financial sector is looking into the possibility of conducting pilot projects concerning the implementation of blockchain technologies in order to create a payment system.
The Financial Action Task Force (FATF) plenary meeting that took place in Paris was recently accompanied by discussions regarding enhanced reporting requirements for crypto transactions.
South Korea Crypto Travel Rule Proposal Seeks to Apply to Smaller Transactions
The Financial Intelligence Unit (FIU) of South Korea reported that its proposals aimed at widening the scope of crypto Travel Rule application to smaller transactions were delivered during a FATF plenary meeting.
Travel rule is an anti-money laundering regulation that calls for crypto asset service providers to obtain and submit data on the sender and receiver of the digital assets transferred beyond certain amounts. This protocol aims to increase visibility and traceability of the funds movement among different platforms.
Currently, South Korea has been imposing a Travel Rule on the transfer of cryptocurrencies above 1 million won which is around $650. This new proposal aims to impose a Travel Rule on transfer amounts below 1 million won.
As per the FIU, application of the Travel Rule in both parties would address gaps that may arise during cross-border transfers.The agency stated that broader implementation could strengthen the consistency of information sharing between platforms involved in crypto transfers.
The discussion formed part of broader FATF deliberations regarding Recommendation 15, the international standard governing anti-money laundering measures for virtual assets and service providers.
FATF Update on Crypto Regulations
The proposal has been presented in view of ongoing difficulties in implementation of FATF standards worldwide.
Recommendation 15 was amended in 2019 so that crypto-assets and CASPs fall under international requirements of anti-money laundering standards. Nevertheless, the implementation is still uneven between jurisdictions.
According to a FATF specific update that came in 2025, there was no total implementation of the obligations by the majority of jurisdictions. The report showed that 49% of the jurisdictions were partially compliant with obligations concerning CASPs, while 21% of jurisdictions did not meet the compliance standards.
As per the findings, only around 29% of jurisdictions managed to obtain compliance levels either largely compliant or compliant till April 2025.
In the course of discussions, FIU also asked for measures against offshore and unregistered crypto platforms. The agency cited concerns about illicit finance activity and the potential for regulatory arbitrage when operators function outside established supervisory frameworks.
DeFi Risks Included in FATF Discussions
Beyond the South Korea crypto Travel Rule proposal, FATF members also approved a report examining risks associated with decentralized finance.
The FIU said the new report was adopted during the Paris discussions. FIU Commissioner Lee Hyung Ju welcomed the report’s approval and addressed broader regulatory challenges facing the digital asset sector.
The regulator noted that differences in licensing requirements, supervisory practices, and oversight of offshore companies still help in regulatory arbitrage.
Inclusion of the DeFi report is an illustration of the continued effort of FATF to review new areas within the digital asset market and how applicable the current AML frameworks are in those systems.
Toss Bank and Solana Launch Blockchain Infrastructure Pilot
While regulators discussed expanded compliance measures, South Korea’s financial sector announced a separate initiative focused on blockchain-based financial infrastructure.
Toss Bank signed a memorandum of understanding with the Solana Foundation to explore the development of digital financial infrastructure for international users.
Source: Solana Floor
Under the agreement, the parties will implement a phased project aimed at studying the potential of implementing blockchain technology in existing financial services.
An important part of the project includes a proof of concept of global remittances and settlements via the Solana blockchain network.
In the first stage of the project, an analysis of the technical possibility of implementing stablecoin-based remittances will take place, and further stages will include cooperation with foreign partners and analysis of anti-money laundering and know-your-client processes.
The institutions also plan to review blockchain-based payment and settlement models and examine potential financial services involving stablecoins and digital assets.
Focus on Cross-Border Payments and Compliance Testing
According to information released by Toss Bank, the collaboration is intended to support testing of blockchain applications within financial infrastructure.
The bank stated that its overseas remittance service currently supports 30 countries and seven major currencies. Future testing will focus on whether blockchain-based systems can be incorporated into those services.
Technical verification, partner testing, and compliance checks are listed in the project roadmap.Anti-money laundering controls and customer verification procedures are expected to be examined as part of the pilot process.
The initiative comes as the Solana Foundation continues to work with several financial institutions in South Korea. Those collaborations remain in proof-of-concept stages while local digital asset regulations continue to develop.
Toss Bank also stated that it plans to monitor domestic legislative developments related to stablecoins. The institution pointed out that future tests can be extended from remittance to other aspects such as payment, digital assets, and tokenized assets.
