The domestic cryptocurrency regulatory landscape has recently been undergoing significant changes. Following the Financial Supervisory Service's introduction of an AI-powered real-time market surveillance system, the 1 million KRW threshold for the Travel Rule on crypto transfers has also been removed. The authorities' intent to manage the market more transparently is clearly taking shape through both technological adoption and regulatory reform.

In particular, with the abolition of the exemption for transfers under 1 million KRW, information for all senders and recipients must now be shared, regardless of the amount. This measure is intended to block circumventive transfers made by splitting amounts into smaller transactions, and it is expected that individual users' trading experiences will see some changes once it takes effect in February 2027. Additionally, financial soundness requirements have been strengthened, restricting the debt-to-equity ratio of Virtual Asset Service Providers (VASPs) to 200% or less.

Despite these tighter regulations, the integration of global-standard institutional infrastructure is actually accelerating. Recently, BitGo Korea, the local entity of the global custodian BitGo, completed its VASP registration with support from investments by Hana Financial Group and SK Telecom. This is significant as it marks the first instance of a global company obtaining a new license directly without acquiring an existing domestic entity.

While the community is concerned about the survival burden on small and medium-sized firms due to these stricter regulations, there is simultaneous expectation that the arrival of global custodians and more sophisticated surveillance systems will enhance market trust. As we are in a transitional period heading toward full institutional adoption, both the industry and users must be agile in adapting to these changing rules.