The revision bill was introduced last November, and passed on 5 March. The government has now approved the revision act at a cabinet meeting on 17 March.
Bank of Korea has cut its key rate by 50 basis points to 0.75 percent, joining other central banks unveiling emergency measures to fight the coronavirus outbreak.
The FSC is also loosening rules on share buybacks and lifting minimum collateral coverage requirements for securities firms, while the BOK considers an interest rate cut.
The 'Special Financial Information Law' authorises Korean financial regulators to oversee the crypto industry and develop AML rules in line with the FATF recommendations.
Starting from Wednesday, the new rules will extend the current 1-day prohibition on 'overheated short-selling stocks' to 10 days, while lowering the thresholds for the designation.
If the injunction is granted, it could clear the path for Woori Financial Group chairman Sohn Tae-sung to lead the group for another three-year term.
The FSC's plans include the development of a high yield corporate bond market, an overhaul of securitisation regulations, and looser rules on securities firms providing capital to SMEs, among others.
Woori Bank and Hana Bank are additionally being fined 19.71bn and 16.78bn won, respectively, for mis-selling of derivatives-linked funds.
The bill is aimed at helping delinquent debtors get back on their feet by limiting debt collection activities and requiring lenders to offer restructuring opportunities.
Legislative revisions have been approved establishing statutory provisions for a trade repository, and penalties up to 100mn won for failures to report OTC derivatives transaction information.