In light of ongoing discussions over virtual asset laws in the nation, the central bank of South Korea has been granted the go-ahead to step up the scrutiny of cryptocurrency service providers and issuers.
The Korea Herald disclosed on April 20 that the Bank of Korea (BoK) will have the authority to look into those who run enterprises related to cryptocurrencies.
The Financial Services Commission (FSC), the nation’s financial watchdog, and the South Korean central bank have been arguing over who has control over cryptocurrencies. However, the FSC will ultimately decide how the digital asset market will be regulated.
The Bank of Korea is now able to request for transaction data from cryptocurrency exchanges after voicing concerns about stablecoins’ potential to threaten the country’s financial stability.
An official 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 announced 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, which was put forward by Democratic Party senator Kim Han-gyu, acknowledges that the Bank of Korea has to be able to obtain data, but the Financial Services Commission is refusing to include that right in the legislation.
