According to CoinDesk, South Korea's financial regulator, the Financial Services Commission (FSC), announced that crypto criminals could face life imprisonment when new consumer protection rules take effect on July 19. In December, the FSC proposed a consumer protection framework called the Virtual Asset User Protection Act, which covers market manipulation, illegal trading, and other violations leading to criminal punishment or fines, depending on the severity.
The FSC stated that in the case of criminal punishment, a fixed-term imprisonment of more than one year or a fine equivalent to three to five times the amount of unjust enrichment is possible. If proceeds from crime exceed 5 billion won ($3.8 million), the perpetrators can face a life sentence. South Korea has been strengthening its oversight of the digital assets sector, particularly targeting consumer protection. Approved initiatives so far compel companies and public figures to disclose crypto holdings.