The debate around virtual assets legislation in South Korea has been ongoing for some time. However, the country’s central bank, the Bank of Korea (BoK), has now been granted the authority to regulate cryptocurrency service providers and issuers.
According to local news source The Korea Herald, the BoK has the power to investigate operators of firms linked to cryptocurrencies. It has expressed concerns about stablecoins’ threats to financial stability and can now demand transaction data from crypto exchanges.
A spokesperson from the National Assembly’s Political Affairs Committee has confirmed that the BoK has the legal right to collect data from digital currency exchange operators. The Financial Services Commission (FSC) will provide an official statement about its stance at a subcommittee meeting on April 25.
This move will give the South Korean central bank access to cryptocurrency transaction data on exchanges within the country. It is expected that this development will speed up the implementation of South Korea’s virtual asset legislation.
The South Korean government has been trying to progress with crypto legislation. However, there has been disagreement between the BoK and the FSC regarding who should oversee the sector. Nonetheless, this recent development brings the BoK closer to becoming the primary regulator of virtual assets in South Korea.