The Bank of Korea (BOK) is one step closer to being granted investigative powers over digital asset platforms after the National Assembly discussed a law that will provide a clear and broader regulatory framework for the burgeoning cryptocurrency industry. In an attempt to address the recent scandals within the crypto space, an official from the Political Affairs Committee said that a proposal has been approved which grants the BOK the power to request documents from digital asset companies.

The Financial Services Commission (FSC) was initially opposed to this bid as it could imply an acknowledgment of the monetary nature of cryptocurrencies. The FSC argued that allowing such inspections would give the general public the wrong impression of virtual asset markets and businesses as they were being treated in the same way as financial markets and institutions. Nevertheless, the BOK was persistent, claiming that given its nature, stablecoins should be subject to the central bank's oversight.

After lengthy debates between the two agencies, the Financial Services Commission has accepted the BOK's right to request necessary information. Kim Han-kyu of the Democratic Party, who is the initiator of the crypto bill, stated that the FSC acknowledged the BOK's investigative rights, but refrained from including it in the bill. However, after further consideration this week, the FSC agreed to it and the National Assembly has now moved on to the next stage in discussing the legal framework for digital asset service providers.

Although the Virtual Assets Act is only in its preliminary stages, the decision taken here could mean better regulatory guidelines for digital assets and a more secure environment for investors in the near future. With the Bank of Korea being given the power to investigate digital asset firms, the country has taken a step towards creating a better system with solid foundations.



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