Bank of Korea’s Increases Authority over Local Crypto Companies

South Korea’s central bank, the Bank of Korea (BoK), is set to increase its scrutiny of cryptocurrency-related businesses following recent developments in the nation’s virtual asset legislation. Amid jurisdictional disputes with the Financial Services Commission (FSC), the BoK has been granted the authority to request data from digital currency operators.

South Korea’s central bank will get access to transaction data from locally running exchanges, indicating its growing grip on the expanding cryptocurrency market.

Concerns about the possible negative implications of Bitcoin have been growing as the sector continues to thrive in South Korea. As a result, the country’s central bank has been given the right to conduct a more thorough assessment of service providers and issuers in the business. This is an essential step toward guaranteeing transparency and stability as the country navigates the developing terrain of digital assets.

Transaction Data Request from South Korea

The Bank of Korea announced its concerns about the financial stability risks posed by stablecoins and will now be able to request transaction data from cryptocurrency exchanges.

On April 20th, The Korea Herald, a local news source, reported that the Bank of Korea (BoK) would be given the right to investigate the activities of cryptocurrency-related enterprises. However, South Korea’s central bank is known to have a dispute with the country’s financial regulator, the Financial Services Commission (FSC), for control of the digital asset market.

Nevertheless, the FSC will ultimately determine the regulatory framework for this industry.

As the Financial Services Commission takes the lead in finalizing the regulatory framework, these developments will likely expedite the implementation of comprehensive virtual asset laws in South Korea. It is unclear if this increased oversight would help both investors and the sector as a whole, or whether they will use their position to enforce crypto market prohibitions.

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