Banks will have to deny services to clients that do not comply with ID verification requirements or fail to report suspicious activity to the FSC's anti-money laundering unit.
At present, there are no restrictions on exchange executives and other employees to trade cryptocurrency on their platforms.
The South Korean parliament has begun discussing a number of bills specifically addressing crypto.
Koreans will be required to pay tax when balances held with foreign virtual-asset businesses exceed 500 million won ($450,000).
All transactions on the platform will be carried out in ethereum.
The central bank governor has pledged to monitor transactions of Korea's financial institutions associated with leveraged crypto trading.
The Bank of Korea is looking for a technology supplier to explore a digital currency in a test environment.
The Bank of Korea hopes to start as early as September, an official said.
The Upbit operator plans to set up a unit to help prevent fraud and assist victims of crypto crime, among other things.
DCG has become the second-largest shareholder in blockchain company Streami, operator of crypto exchange Gopax.
Kim Byung-wook said he believes the crypto industry is unique and different from traditional finance.
Crypto traders’ gains will be subject to 20% tax on profits over 2.5 million won (~$2,250) from January 2022.
Young employees in their 20s and 30s are reportedly leaving the workforce to pursue riches in crypto trading.
The move may mean the investigation is beginning to intensify.
Eun Sung-soo, head of South Korea's chief financial services regulator, said no crypto exchange had applied for its VASP license.