The South Korean Central Bank (BOK) is set to gain the ability to investigate cryptocurrency entities after the Financial Services Commission (FSC) dropped its opposition against the move. According to a report, the FSC conceded to the central bank’s demand after being accused of wanting to be the only regulator of virtual assets.
Battle Over Who Should Regulate Crypto Assets
The Bank of Korea has been trying to gain the power to investigate virtual assets after the ruling and opposition parties agreed that it should have the “right to request data submission.” This is because the risks associated with these markets can threaten financial stability.
The debate over which body should oversee payments and settlements has been a long-running one. The FSC had initially been unwilling to hand over the reins to the central bank, but accusations that it was only interested in being the sole regulator of virtual assets may have forced it to give in.
FSC’s Monopoly Aims
Korean lawmaker Kim Han-gyu, who spoke about the FSC’s ambitions on March 28, said that “the Financial Services Commission acknowledges that it is necessary for the Bank of Korea to have the right to request data, but refuses to include it in the bill.”
Despite the FSC’s capitulation, proposed bills suggest that the regulator will still be in charge of investigating virtual assets for “unfair transactions.”
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