The Korea Herald published recently that the Bank of Korea (BoK) will be given the authority to probe service providers of cryptocurrency and related enterprises.
Bank of Korea to Extract Data from Crypto Firms
With this move, the South Korean central bank is poised to oversee and track cryptocurrency service providers and issuers while the government continues to debate virtual asset regulation.
The Bank of Korea is concerned about the economic security risks posed by stablecoins and is going to be able to seek transaction data from cryptocurrency exchanges.
A representative from the National Assembly’s Political Affairs Committee affirmed the BoK’s power to collect data from digital currency companies last week.
According to Democratic Party politician Kim Han-gyu, who introduced the country’s crypto rules, the Crypto Assets Act:
“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 Struggle Between FSC and Bank of Korea
Meanwhile, the South Korean central bank continues to be fighting for crypto authority with the country’s financial regulator, the Financial Services Commission (FSC). The FSC will have the last word in controlling the regulation of the digital asset market.
Also, the FSC cautioned that if the central bank regulates crypto, it will give people the impression that the digital currencies have the same status that they have in conventional finance. For the past three years, the two organizations have been at odds over cryptocurrency laws.
FSC Accused of Monopolizing Authority Over Crypto
Officials from the nation’s State Affairs Commission’s Political Affairs Committee have accused the FSC of attempting to monopolize its authority as a crypto watchdog.
South Korean officials have already been doing a lot to put the region’s growing crypto economy in context.
Notably, South Korea’s Financial Services Commission (FSC) announced plans in February to regulate crypto assets and securities in accordance with applicable rules.