South Korea has been considering ways to make its cryptocurrency market more accessible to international investors while tightening anti-money laundering (AML) controls. The issue was expressed by King Sung-ji, head of the Financial Services Commission’s crypto division, during a seminar at the National Assembly.
At the time, South Korea’s rules made it difficult for foreign investors to trade directly through local exchanges. The discussion focused on whether stronger AML safeguards could provide a framework for wider participation without weakening controls on money laundering and illicit transactions. Peter Chung, head of the Presto Research team, advocates allowing foreign investors to trade on Korean exchanges, arguing that greater participation could add liquidity and activity to the market.
AML rules remain central to any opening
South Korea has continued strengthening its AML framework rather than simply removing restrictions. The Financial Intelligence Unit (FIU) has increased scrutiny of virtual asset service providers and worked on tighter controls for transactions involving overseas platforms. In March 2026, regulators proposed stronger customer due diligence and additional reporting requirements for certain transfers to overseas exchanges and wallets.
These measures show the main challenge for South Korea: expanding access while maintaining control over the movement of funds. The country is also trying to ensure that overseas platforms serving Korean users comply with local rules.
That approach was visible when South Korean authorities urged Google to restrict access to 17 foreign crypto exchanges that were operating without the required registration. The blocked platforms included KuCoin, MEXC, Phemex, XT, CoinEx, BitMart, and Poloniex.
What has changed since the proposal
South Korea has since moved further toward tighter oversight. In August 2026, the government approved changes strengthening VASP registration requirements, customer due diligence and AML obligations for transfers involving overseas VASPs and personal wallets. The changes also removed the previous KRW 1 million threshold for applying the travel rule to virtual asset transfers.
The country aimed to strengthen its position in the global crypto market, but greater international access remains tied to regulatory safeguards. South Korea’s latest measures suggest that any broader opening will likely be built around stronger compliance requirements rather than a simple removal of restrictions.
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