South Korea is set to eliminate the 1 million won, or about $705, threshold for its crypto travel rule, requiring virtual asset service providers to share sender and receiver information for all virtual asset transfers from Feb. 20 next year after a six-month grace period. The enforcement decree amendment, prepared by the Financial Services Commission, passed a vice-ministerial meeting on Aug. 6 and is due to go to the Cabinet on Aug. 11, with some provisions taking effect on Aug. 20. The change would also require operators that receive virtual assets without the required transfer information to request that data from the counterparty, aligning the framework more closely with Financial Action Task Force standards. At the same time, authorities are tightening VASP registration and oversight by moving major shareholder change reporting to 30 days before the planned registration date, expanding review beyond the largest shareholder to related parties and de facto controllers, clarifying creditworthiness and legal-compliance grounds for rejecting applications, and introducing scrutiny of dormant operators with no business activity for six consecutive months. Financial authorities plan to brief the industry on Aug. 13, while smaller operators are raising concerns that tougher capital, personnel and internal-control expectations could accelerate consolidation in South Korea's crypto exchange market.