South Korea's Central Bank to Increase Oversight of Digital Assets
Main page News, South Korea, Regulations, Cryptocurrency
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April 25, 2023

South Korea's central bank (BoK) intends to investigate and monitor the activities of cryptocurrency organizations, The Korea Herald has reported.

The regulator has expressed concerns about the economic risks associated with stablecoins and will now be able to request transaction data from crypto exchanges.

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The Korean central bank has been competing with another agency, the Financial Services Commission (FSC), for the right to regulate the Web3 sector for two years. At the same time, the main power is still concentrated in the FSC.

MP Kim Hangyu, who is promoting the digital asset law, has stated:

"The FSC recognizes that the Bank of Korea should have the right to request data, but we refuse to include this clause in the bill."

The FSC has expressed concern that, with the expansion of powers, the BoK will equate cryptocurrencies with traditional finance.

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At the same time, officials from South Korea's Political Affairs Committee have accused the FSC of trying to monopolize its position as a cryptocurrency regulator.

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