The Bank of Korea (BOK) has been granted the power to conduct on-site inspections and demand financial documents from crypto exchanges functioning within the nation, enabling it to investigate local cryptocurrency exchanges, according to a local news media report.
The Bank of Korea’s primary goal is maintaining price stability nationwide. The bank can then manage and enhance the economy thanks to this duty.
Crypto Exchanges in South Korea to Face Oversight from Local Bank
The central bank will be able to supervise the operations of exchanges closely, thanks to the additional rights, and, if necessary, take appropriate action. If exchanges transgress laws governing digital assets, this includes the authority to levy penalties and withdraw licenses.
The decision was made in mounting worries about the threats cryptocurrencies may bring to economic and financial stability. The Bank of Korea is prepared to take more measures to prevent concerns like tax evasion and money laundering from occurring.
However, to take such action, the bank must have the authorization it obtained last week from a representative of the Political Affairs Committee of the National Assembly. According to the article, the Federal Service Commission (FSC) will formally announce the bank’s stance during a subcommittee meeting on April 25. The upcoming summit might hasten the implementation of the nation’s digital asset legislation.
Furthermore, Kim Han-gyu, a politician from the Democratic Party, stated that the FSC favors the central bank’s new authority to regulate and require transaction data from exchanges of digital assets. The FSC did note, however, that it would not add this event to the bill.
Crypto Regulations And Policies In South Korea
The regulatory framework concerning cryptocurrency in South Korea is intricate, but it encompasses the safety and protection of investors and consumers involved in the industry. The country’s approach towards crypto regulations is significantly shaped by the government’s attitude towards this field of business.
Related Reading: | XRP Prefunding Debate: Ripple’s CTO Addresses Controversy & Risk Involved |