Bank of Korea To Fight For The Right To Control Virtual Asset Companies

Key Points:

• The Bank of Korea may have the right to investigate the virtual asset business.
• The Korean National Assembly revealed that the Bank of Korea is seeking to clarify in the “Virtual Assets Act” that banks have the right to require virtual asset operators and issuers to submit data.
• At present, Congress is collecting government opinions.

According to the Herald Economic report, as negotiations on virtual asset-related regulations are now taking place in the National Assembly, it seems that the Bank of Korea, Korea’s central bank, will be granted the authority to probe virtual asset companies.

According to relevant sources in the Korean National Assembly’s Political Affairs Committee, the Bank of Korea is attempting to clarify under the “Virtual Assets Act” that banks have the authority to force virtual asset operators and issuers to disclose data.

Earlier, South Korea’s Financial Services Commission opposed this plan, but the agency now expects to accept it. At the moment, Congress is gathering government viewpoints, and the Financial Services Committee intends to publicly voice its stance at the bill’s first subcommittee meeting on April 25.

However, the BOK has been battling the Financial Services Commission on this, but it was just announced that the Financial Services Commission declared to the National Assembly its willingness to accept it.

As a consequence, the debate over virtual asset legislation is anticipated to heat up once again. The National Assembly began debating virtual asset-related laws last month, but disagreements remained over whether the Bank of Korea gave the ability to seek data submission and whether the Financial Supervisory Service defined the right to inspect virtual asset operators.

The Bank of Korea has said that it should have the authority to seek data from virtual asset operators and issuers. Because of the strong character of the currency, the opinion was that regulation by monetary authorities was required in the case of stablecoins.

The Financial Services Commission, on the other hand, adopted the opposite stance, arguing that if the Bank of Korea is engaged in the debate of the Virtual Asset Act, it might be seen as accepting the monetary character of virtual assets.

About the Financial Supervisory Service’s inspection right, it is claimed that they have established a line stating:

“If the Financial Supervisory Service’s inspection right is specified in the Virtual Asset Act, it will cause the general public to misunderstand that the virtual asset market/business operator is treated the same as the financial market/institution.”

On the other hand, the Financial Supervisory Service will almost certainly have the authority to probe virtual assets. The majority of the already proposed measures include provisions that provide the Financial Services Commission jurisdiction to examine unfair transactions while delegating the scope of work to the Financial Supervisory Service.

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Harold

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