Bank of Korea has the authority to look into regional cryptocurrency companies.

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By Degen Lipsa

Data on cryptocurrency transactions will be accessible to the Bank of Korea through local exchanges.

In view of ongoing discussions over virtual asset laws in the nation, the central bank of South Korea has been granted the go-ahead to intensify its examination of cryptocurrency service providers and issuers.

The Korea Herald, a local news source, announced on April 20 that the Bank of Korea (BoK) will have the authority to look into those who run enterprises related to cryptocurrencies.

Bank of Korea has the authority to look into regional cryptocurrency companies.
Source – coincu

The Financial Services Commission (FSC), the nation’s financial watchdog, and the South Korean central bank have been squabbling over who has control over cryptocurrencies. However, the FSC will ultimately decide how the digital asset market will be regulated.

The Bank of Korea can now ask cryptocurrency exchanges for transaction data after voicing concerns about stablecoins’ potential to threaten the country’s financial stability.

An employee of the Political Affairs Committee of the National Assembly last week affirmed the BoK’s authority to request information from companies that deal in digital currencies. The FSC’s formal stance will be presented during a subcommittee meeting on April 25.

According to the article, the summit will hasten the implementation of South Korea’s virtual asset legislation.

The Crypto Assets Act, drafted by Democratic Party politician Kim Han-gyu, is the legislation that established the nation’s cryptocurrency laws. Kim Han-gyu stated: “The Financial Services Commission admits that it is necessary for the Bank of Korea to have the right to request data, but it is refusing to include it in the bill.”

The central bank and the FSC have clashed for control of cryptocurrency law, despite efforts by the South Korean government to advance it.

The FSC issued a warning, however, that if the central bank regulates cryptocurrencies, it will imply that digital assets have a comparable status to conventional finance. Previously, the FSC chair stated that he does not view cryptocurrency as a financial asset.

For the past three years, the two organisations have been at odds over cryptocurrency laws. Officials from the Political Affairs Committee, a branch of the nation’s State Affairs Commission, have accused the FSC of attempting to monopolise its position as a crypto regulator.

In light of the most recent development, the central bank of South Korea and its financial watchdog will be able to look into cryptocurrency operators and have complete access to transaction data.

Recently, the FSC has taken enforcement measures against cryptocurrency companies and shares the same stance as the US Securities and Exchange Commission in that it views cryptocurrency assets as securities.

Midway through 2022, the Financial Supervisory Service of South Korea, which is a part of the FSC, announced the creation of the Digital Assets Committee.

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