The Winds of International Regulation Blow Through the Crypto Industry The cryptocurrency market stands at the center of regulatory change. Recently, the 'Travel Rule,' based on international Anti-Money Laundering (AML) regulations, has emerged as a major issue in the global crypto industry, with full implementation expected in the Asia-Pacific region starting in 2026. The EU and the UK have already implemented the Travel Rule since December 2024 and September 2023, respectively, accelerating the global standardization of cryptocurrency regulations. These changes are significantly impacting not only cryptocurrency exchanges and related businesses but also investors who hold and use cryptocurrencies, and even national economies. The Travel Rule is a regulation updated by the Financial Action Task Force (FATF) in 2019, imposing the same obligations on Virtual Asset Service Providers (VASPs) as on traditional financial institutions. It requires the recording and sharing of sender and receiver information during cryptocurrency transactions, emphasizing measures to prevent money laundering and terrorist financing. Specifically, it mandates the sharing of information such as the sender's name, account number, address, and the receiver's name and account number between cryptocurrency exchanges. The EU has been operating the Travel Rule among member states under a unified framework through its Funds Transfer Regulation (TFR) since December 2024. As of March 2026, the EU's TFR has been in effect for three months, with all cryptocurrency service providers in the 27 member states complying with the regulation. Notably, both the EU and the UK require detailed sender and receiver information for all transactions, regardless of the transaction amount. This differentiates their approach from that of the United States, demanding complete transparency even for small transactions, thereby causing fundamental changes in business operations. The UK already began implementing its own Travel Rule in September 2023, based on existing guidelines from the Financial Conduct Authority (FCA). As of March 2026, the UK's Travel Rule has been in effect for two and a half years, and cryptocurrency exchanges within the UK have already established a significant level of compliance systems. The UK FCA has demonstrated efforts to build an independent financial regulatory framework post-Brexit while maintaining harmony with international standards, which plays a crucial role in London's status as a global cryptocurrency hub. South Korea's cryptocurrency industry also faces these global regulatory changes. While the current South Korean crypto market operates within the framework of the Act on Reporting and Using Specified Financial Transaction Information (Special Financial Information Act), the need to rapidly establish a response system to the spreading global Travel Rule standards is becoming increasingly emphasized. In particular, not only large exchanges but also small and medium-sized cryptocurrency businesses will be required to make bold investments in technological and procedural infrastructure. While major domestic exchanges are somewhat prepared, already operating real-name verified account systems, establishing information-sharing protocols with foreign exchanges for cross-border transactions presents a new challenge. The implementation of the global Travel Rule reflects a trend where the boundaries between traditional financial services and cryptocurrency services are increasingly narrowing. Exchanges and service providers must secure transparency in line with international standards to maintain competitiveness, which goes beyond mere regulatory compliance and directly impacts corporate credibility and brand value. Given the frequent cross-border nature of cryptocurrencies, a complex compliance environment is emerging where different regulatory requirements from various countries must all be met. The impact of the Travel Rule can be observed through examples from various countries. The United States is incorporating the Travel Rule into its Bank Secrecy Act (BSA), primarily through the Financial Crimes Enforcement Network (FinCEN). In the U.S., transactions exceeding $3,000 are required to share sender and receiver information, which differs from the unlimited application in the EU and UK. This difference highlights the complexity exchanges face in building systems tailored to diverse regulatory requirements in each country. For instance, a $2,500 transaction is not subject to the Travel Rule in the U.S. but requires full information sharing in the EU. What Will Be the Impact on Korean Investors and Businesses? In the Asia-Pacific region, 2026 is expected to be a critical turning point for cryptocurrency regulatory compliance. Vietnam is actively implementing anti-money laundering systems, including strengthening automated tax transparency through its Digital Tax Information (DTI) law. Furthermore, with the full implementation of
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