The Bank of Korea (BoK), the central bank of South Korea, has been now granted the right to investigate cryptocurrency service operators and issuers within its country. This move is part of the discussions surrounding the implementation of the Crypto Assets Act from South Korea, a country which has been making efforts to regulate its digital asset sector for the past three years.

The move implies that BoK and the Financial Services Commission (FSC) of South Korea will work together to strengthen this sector, although the FSC will still have the final say in controlling the regulation of cryptocurrency. Furthermore, BoK will have the authority to request data from crypto exchanges concerning financial stability risks from stablecoins.

The decision was confirmed by an official from the National Assembly’s Political Affairs Committee, who set April 25 as the date for a meeting of a subcommittee that will trigger the rollout of the Crypto Asset Act. This act was proposed by Democratic Party lawmaker Kim Han-gyu.

This new stance creates a dispute between the South Korean central bank and its financial regulator since the FSC has expressed its distaste in considering digital assets as traditional finance. The FSC chairman has declared multiple times that he doesn't consider crypto as a financial asset.

The FSC has showed a firm stance on crypto recently as it applies the same methods as the United States Securities and Exchange Commission does. It has also created a committee called Digital Assets Committee which will have an investigative role in this area.

To sum up, South Korea is taking necessary steps to control its digital asset sector. The Financial Services Commission and the Bank of Korea are now amongst those responsible for monitoring and investigating crypto service operators and issuers, following the launch of the Crypto Asset Act. This act will be implemented by the end of April.



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