South Korea’s Financial Intelligence Unit told the Financial Action Task Force that gaps in cross-border crypto regulation are enabling regulatory arbitrage and proposed expanding Travel Rule requirements below the current 1 million won threshold. The proposal would apply sender and recipient information-sharing requirements to both sending and receiving crypto asset service providers and support stronger action against offshore and unregistered platforms. The intervention came at a FATF plenary in Paris, where members also approved a new report on risks in decentralized finance and continued discussions on implementation of Recommendation 15, the global anti-money-laundering standard covering virtual assets. South Korea’s push aligns with its planned domestic rule change in August, when the Travel Rule threshold is due to be lowered from 1 million won, or about $730, to all transactions. The FIU had earlier floated mandatory suspicious-transaction reporting for overseas virtual-asset transfers above 10 million won, but dropped that fixed-amount requirement after objections from exchanges represented by DAXA and shifted toward a risk-based approach.