South Korea’s Central Bank Seeks Authority to Monitor Crypto Transactions: Report

The Bank of Korea hopes to start as early as September, an official said.

AccessTimeIconMay 13, 2021 at 8:50 a.m. UTC
Updated Sep 14, 2021 at 12:54 p.m. UTC

South Korea’s central bank is seeking the authority to monitor cryptocurrency transactions made through users’ bank accounts.

  • The plan was revealed in a document recently submitted by the Bank of Korea (BOK) to Rep. Choo Kyung-ho of the country’s main opposition party, the Korea Herald reported Thursday.
  • The measure, if approved, would be the latest layer of regulatory scrutiny to be applied to the crypto industry in South Korea.
  • “We plan to utilize our legal authority over requesting document submittal from financial institutions to monitor the volume of cryptocurrency transactions made through bank accounts,” the document reads, per the report.
  • The BOK is able to request materials from financial institutions where it is deemed necessary in the interest of the institution’s monetary and credit policies.
  • The measure may be brought in as early as September, a BOK official said.
  • September is also the deadline for cryptocurrency exchanges in the country to register as virtual asset service providers (VASP), a requirement that will enable the state to determine the legality of their operations in an attempt to crack down on money laundering and fraud.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.