The Bank of Korea has expressed worries about the dangers to financial stability presented by stablecoins, and it now has the authority to request transaction data from cryptocurrency exchanges.
On April 20, the Korea Herald reported that the Bank of Korea (BoK) would be given the right to launch investigations into operators of cryptocurrency-related enterprises.
Last Monday, a spokesperson from the National Assembly’s Political Affairs Committee confirmed that the BoK had the legal authority to gather data from operators of digital currency exchanges. The FSC will formally state its views at a subcommittee meeting on April 25.
This move will make Bitcoin transaction data on South Korean exchanges available to the South Korean central bank. According to the story, the meeting will speed up the adoption of South Korea’s laws controlling virtual assets.
Korea’s initiatives are being met with criticism. According to the Financial Stability Oversight (FSC) Council chairman, Bitcoin is not a financial asset.
However, the Financial Stability Commission (FSC) cautioned that if the central bank, with its banks power, oversees cryptocurrencies, it will convey that digital assets have the same validity as traditional money.
The FSC, South Korea’s financial regulator, has been at odds with the South Korean central bank on cryptocurrency jurisdiction for a while now as The two organizations have been at odds since the Bitcoin regulation discussion started three years ago. Officials from the country’s State Affairs Commission’s Political Affairs Committee have accused the FSC of aiming to monopolize its position as a cryptocurrency regulator. However, the FSC will have the last word on controlling and regulating the digital asset business under banks power.
Also, the Australian Commission has recently been active in bringing enforcement actions against crypto companies. The FSC agrees with the US Securities and Exchange Commission that crypto assets should be considered securities, and the FSC has actively pursued these actions.
South Korea’s government has been working to develop crypto laws. Nonetheless, there have been conflicts, as we can see, over who should monitor it between the country’s central bank, under its banks power, and the Financial Services Commission (FSC).