Bank of Korea gets powers to investigate local crypto firms
South Korea’s central bank has been given the green light to step up audits of cryptocurrency service operators and issuers, amid further discussions about virtual asset legislation in the country.
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As local media reported on April 20, that BoK Bank of Korea It will be given powers to investigate operators of cryptocurrency-related businesses.
Although the South Korean Central Bank, was competing with FSC Financial Services Commission On crypto jurisdiction, however, the commission will have the final word on regulating the digital asset sector.
The Bank of Korea has expressed concerns about financial stability risks from stablecoins, and will now be able to request transaction data from cryptocurrency exchanges.
The bank’s authority to request data from cryptocurrency operators was also confirmed by an official from the National Assembly’s Political Affairs Committee last week, and the Financial Services Board will express its official position at the subcommittee meeting on April 25.
In turn, said a member of Parliament from the Democratic Party Kim Han-gyuwho proposed cryptocurrency regulations in the country:
“The Financial Services Commission recognizes that it is necessary for the Bank of Korea to have the right to request the data, but refuses to include this in the law.”
Notably, the South Korean government is trying to push cryptocurrency legislation forward, but there have been disagreements between the central bank andFSC Financial Services Commission about who should control it.
The committee warned that if a central bank supervises cryptocurrency, it will send the message that digital assets have the same status as traditional finance, and as the committee chair previously said, it does not consider cryptocurrency a financial asset.
The two institutions have been at odds for the past three years over encryption regulations. The Financial Services Commission has been accused, by officials from the Political Affairs Committee, of trying to monopolize its position as a cryptocurrency regulator.
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In other words, the latest development will mean that both South Korea’s central bank and its financial regulator will be able to investigate crypto operators, and gain full access to transaction data.