Apr 24, 2023
BoK Gains Right to Investigate Crypto Operators in South Korea
The Bank of Korea (BoK) is set to take a more active role in the regulation of digital assets in South Korea, with the country’s financial regulator, the Financial Services Commission (FSC), being given the final say in the matter.
The BoK will now be able to request transaction data from cryptocurrency exchanges, as well as investigate operators of crypto-related businesses, after the National Assembly’s Political Affairs Committee approved the move.
The BoK has expressed concerns over financial stability risks from stablecoins, and is keen to ensure that the crypto sector is properly regulated.
The FSC is expected to express its official position on the matter at a subcommittee meeting on April 25, which could accelerate the rollout of South Korea’s virtual asset laws.
Kim Han-gyu, a Democratic Party lawmaker who proposed the Crypto Assets Act, said: “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 FSC has warned that if the BoK governs crypto it could give the false impression that digital assets have the same standing as traditional finance. The FSC chair has previously stated that he does not consider crypto a financial asset.
The FSC has been active in enforcing regulations against crypto companies and takes the same position as the United States Securities and Exchange Commission (SEC) in that it considers crypto assets securities.
The FSC’s Financial Supervisory Service recently announced an investigative body called the Digital Assets Committee, which will look into the promotion, marketing and selling of Non-Fungible Tokens (NFTs).
The FSC and BoK are now in a better position to ensure that the crypto sector is properly regulated and that investors are protected. This could help to create a more favorable environment for NFT marketing and promotion, as well as the selling of NFTs.
Twitter NFT marketing, in particular, could benefit from the increased scrutiny of crypto service operators and issuers. A web3 agency could help NFT projects to ensure that they are compliant with the regulations set out by the BoK and FSC.
With the Bank of Korea’s increased scrutiny of the crypto sector, South Korea is set to become an even more attractive market for investors and NFT projects alike.
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