Exchanges Not Fully Prepared Yet
The world’s first mandatory cryptocurrency travel rule became effective in South Korea on March 25 so that sender and receiver information is confirmed by an exchange each time a request is made for a deposit or withdrawal of one million won or more.
Exchanges are not fully prepared yet. For example, a remittance of one million won or more from UPbit is limited to nine domestic and three Asian exchanges as of now and the 12 exchanges do not include major ones such as Bithumb, Coinone, Korbit, Binance, OKX and FTX. Remittance from Bithumb to other domestic exchanges will be made possible starting from early next month and overseas remittance from Bithumb is limited to 13 as of now, including Binance, Coinbase and FTX.
At UPbit, Coinone and Korbit, the rule is applied to a deposit or withdrawal of at least one million won. Bithumb is currently applying the rule to every amount and is planning to follow suit. Free cryptocurrency movements in the major group of UPbit, Bithumb, Korbit and Coinone will be allowed on April 24 after their interworking is completed.
One of the most noticeable changes is that cryptocurrency remittance now requires remittee name input. “Remittance mistakes are expected to decrease and this is a clear merit of the travel rule,” said an industry source, adding, "At the same time, the complicated procedures may hinder DeFi and NFT investments using foreign exchanges and personal wallets.”