FSC Chairman Lee Eok-won emphasized that the regulator is introducing new rules for cryptocurrency transactions to enhance market security and prevent money laundering using virtual assets.
The "Travel Rule," which requires sender and recipient information for cross-border transfers, will now apply to transactions over 1 million won ($680).
Furthermore, the new measures impose restrictions on equity participation in crypto companies for individuals with criminal records related to drug offenses and tax evasion.
Eok-won added that money laundering activities involving virtual assets will be strictly suppressed, and transactions with virtual assets on foreign exchanges with a high risk of money laundering will be prohibited.
Earlier, Kim Sang-hoon, chairman of the political committee of South Korea's ruling People's Power Party, called on regulators to promptly allow the launch of spot exchange-traded funds (ETFs) linked to Bitcoin.