South Korea's Financial Services Commission Chairman Lee Yi-won has announced strict measures against money laundering involving cryptocurrencies. As part of these efforts, the scope of the "Travel Rule," which requires real-name verification for transactions, will be expanded to include all cryptocurrency transfers, regardless of the amount. Previously, transactions under 1 million KRW were exempt, but regulators are closing this loophole to prevent "smurfing"—a technique where large illicit funds are broken down into smaller transactions to evade detection. In addition to the expanded Travel Rule, authorities plan to block access to high-risk overseas platforms that do not comply with local regulations. The overhaul will also include tighter financial requirements for local exchanges to ensure robust AML compliance and market stability. FSC Chairman Lee emphasized that these measures are crucial for closing AML loopholes and enhancing overall market oversight. [Update 1] Reports confirm that the regulatory overhaul is specifically targeting the "smurfing" evasion tactic. By removing the 1 million KRW threshold, regulators aim to ensure comprehensive tracking of all fund movements. The new measures also mandate stricter financial reserves for local exchanges to protect users.