Central Bank in South Korea Given Expanded Authority over Cryptocurrency

The Bank of Korea (BoK) has been given further authority to look into cryptocurrency service providers and issuers as South Korean lawmakers continue to explore laws governing virtual assets. The Korea Herald said that the BoK would now have the authority to examine cryptocurrency-related enterprises and ask digital currency providers for transaction data.

Despite the current discussion, a representative from the Political Affairs Committee of the National Assembly has acknowledged the BoK’s authority to ask for information from cryptocurrency exchanges. At a subcommittee meeting on April 25, the FSC will officially state its view, which is anticipated to hasten the implementation of South Korea’s virtual asset legislation.

The central bank and the FSC have clashed about who should be in charge of crypto law, despite efforts by the South Korean government to advance it. The Crypto Assets Act was introduced by Democratic Party senator Kim Han-gyu, who said that while the FSC acknowledges the BoK’s power to seek data is required, it is refusing to incorporate it in the legislation.

The most recent development indicates that the central bank of South Korea and its financial regulator will have more authority to look into crypto operators and have complete access to transaction data. This action comes after years of contention between the two organizations about cryptocurrency laws.

Recently, the FSC has taken enforcement measures against cryptocurrency firms and shares the same stance as the US Securities and Exchange Commission in that it views cryptocurrency assets as securities. The Financial Supervisory Service of South Korea, which is governed by the FSC, announced the establishment of the Digital Assets Committee in mid-2022.

To sum up, the South Korean government is still working to control the cryptocurrency industry. The Financial Services Commission is anticipated to speed up the implementation of South Korea’s virtual asset rules, while the Bank of Korea has been given broader authority to look into cryptocurrency-related enterprises. Despite differences, both organizations will now have complete access to transaction data and be able to look into crypto operators.