Every crypto transfer between South Korea’s registered exchanges will soon face Travel Rule scrutiny, regardless of how small the amount involved happens to be. The country’s Cabinet approved this change on Tuesday, amending the Enforcement Decree under the Act on Reporting and Using Specified Financial Transaction Information, and formally eliminating the 1 million won floor that previously shielded smaller transfers from reporting duties.According to the Financial Intelligence Unit, splitting large transfers into smaller pieces had become a known workaround for avoiding Travel Rule obligations, since amounts under 1 million won escaped scrutiny under the old system. Closing that gap means information sharing requirements now cover transfers of any size moving between two licensed virtual asset service providers within the country.Self-hosted wallets fall under this expanded framework too, not just transfers between exchanges. Any platform sending funds to an unhosted wallet must collect identifying details about whoever controls that wallet on the receiving end. Exchanges accepting incoming transfers face similar duties, gathering information on both the sender and the recipient before a transaction can proceed. If that information is missing or incomplete, receiving platforms have explicit authority to either request the missing details or refuse the transaction altogether.Further, compliance costs for South Korean exchanges are likely headed upward as a consequence of these amendments. Applying due diligence procedures uniformly, with no exemption carved out for tiny transfers, means more verification work and potentially longer processing times across the board. Regulators appear willing to accept that tradeoff, arguing the stricter approach will make crypto activity in South Korea more transparent and easier to trace back to real individuals. Reduced illicit actvity is the stated goal behind tightening the rules this far. Ordinary crypto users, meanwhile, will likely notice extra verification prompts appearing whenever they send funds toward unhosted wallets or exchanges based outside the country.A second set of changes embedded in the same decree targets money laundering risks tied specifically to overseas platforms and personal wallets. Domestic VASPs are now required to sort counterparties into risk tiers and make transfer decisions based on where each one lands. Low-risk foreign exchanges remain fair game for outbound transfers under the new system. Other overseas platforms and personal wallets are treated more cautiously, with transfers permitted only when regulators can confirm the sender and recipient are one and the same person. Counterparties flagged as high risk are cut off entirely, with no transfers allowed to reach them under any circumstance.Larger transactions trigger yet another layer of obligation under the revised rules. Any operator processing a transfer worth 10 million won, close to $7,200, or more must build and actively run its own system for catching suspicious transaction patterns.As for timing, the registration-related provisions are due to take effect on August 20. Companies already operating as registered VASPs won’t need to meet every new standard immediately, however. Regulators have carved out an extra year specifically for existing providers to bring their financial, staffing, infrastructure, and internal control systems into full alignment with what the amended decree now demands.Onyx Set to Relaunch After $3.8 Million Hack, Backed by Community Vote7 Best Indexed Universal Life Insurance (IUL) CompaniesHow to Buy Crypto with AMEXExolix Review: Anonymous Instant Crypto Exchange