South Korea's Cabinet approved amendments on Aug. 11 that remove the 1 million won threshold for Travel Rule compliance on transfers between registered virtual-asset service providers, requiring sender and recipient information to be shared on every inter-VASP transfer regardless of size. The revised Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information is designed to close a loophole that regulators said let users avoid checks by splitting larger transfers into smaller ones. In one case cited by the Financial Intelligence Unit, a user deposited around 200 million won into a crypto exchange, bought Tether USDt and withdrew the funds in 216 separate transactions kept below 1 million won. Receiving platforms will have to collect complete sender and recipient data for all covered transfers and will be able to request missing information or reject the transaction. The decree also extends anti-money-laundering controls to transfers involving foreign exchanges and personal wallets. Domestic VASPs will have to assess the risk of foreign counterparties, allow transfers to low-risk overseas exchanges, permit transfers involving other foreign platforms or personal wallets generally only when the sender and recipient are confirmed to be the same person, and block transfers tied to high-risk counterparties. Platforms must build their own monitoring systems for suspicious transactions of at least 10 million won that pass through foreign exchanges or personal wallets. The zero-threshold Travel Rule provisions take effect six months after formal promulgation, while broader VASP registration and major-shareholder review changes take effect on Aug. 20, 2026, with some existing providers getting an additional year to meet certain financial, staffing and infrastructure requirements.