The Bank of Korea (BOK) is fighting for the ability to control virtual asset companies in South Korea. According to sources from the Korean National Assembly's Political Affairs Committee, the BOK is seeking to clarify the 'Virtual Assets Act' which would give banks the authority to access data from virtual asset operators and their issuers. This had previously been opposed by South Korea's Financial Services Commission, but it seems they have now accepted the move. It is expected that their official stance will be released at the first subcommittee meeting on the 25th April.
The ongoing debate around virtual assets has been heating up once more. During March, the National Assembly began discussing virtual asset-related laws, but disagreements emerged over who should have the right to demand data submission and the Financial Supervisory Service's inspection rights.
The Bank of Korea posited that it should have the authority to retrieve data from virtual asset operators, by virtue of the strength of the currency and the need for regulatory oversight with regards to stablecoins. The Financial Services Commission, however, took the opposite stance, suggesting that if the BOK were to be part of the Virtual Assets Act talks would signal an acceptance of the currency's monetary characteristics.
The Financial Supervisory Service's inspection rights were also contentious. It was argued that stipulating this in the Act would lead the public to perceive virtual assets similarly to financial markets and institutions. Despite this, it is thought that jurisdiction to examine unfair transactions will fall under the Financial Supervisory Service.
In conclusion, discussion over the Virtual Assets Act has been revived, as South Korea's banks push for the right to control virtual asset companies. The Bank of Korea wishes to have the authority to access data from operators and issuers, whilst the Financial Supervisory Service is also expected to have the right to investigate virtual assets. The Financial Services Commission's official position will be declared in the upcoming meeting on April 25th.
Nicole Gomez
- 2023-04-20
South Korea's Bank of Korea Seeking Control Over Virtual Assets
South Korea's Bank of Korea is pushing for the Virtual Assets Act to be clarified, giving banks the authority to access data from operators and issuers. The Financial Services Commission's official stance is expected to be released on April 25th.
