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South Korean Financial Services Commission Allows Central Bank to Investigate Virtual Assets

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On April 22nd, it was reported that the South Korean Financial Services Commission (FSC) has abandoned its opposition to the Central Bank\’s acquisition of the \”request for data sub

South Korean Financial Services Commission Allows Central Bank to Investigate Virtual Assets

On April 22nd, it was reported that the South Korean Financial Services Commission (FSC) has abandoned its opposition to the Central Bank’s acquisition of the “request for data submission right”, and the Central Bank of Korea will be granted the right to investigate virtual assets. According to local reports, the FSC’s decision was made a few weeks after a subcommittee of the Political Affairs Committee of the South Korean Parliament accused the regulatory agency of seeking to become the sole regulator of virtual assets. It is reported that as the FSC has decided to waive its requirements, there are reports that the South Korean National Assembly will continue to develop plans to incorporate the right of the Central Bank of Korea to request data into the Virtual Asset Law. Before finally agreeing to the central bank’s request, there were multiple conflicts between the FSC and the Central Bank of Korea regarding which of the two institutions should regulate payment settlement. On the other hand, the central bank insists on being granted the right to investigate digital assets, as the risks generated by the virtual asset market ultimately threaten financial stability. （News.Bitcoin）

Report: The Bank of Korea has obtained the right to investigate virtual asset entities after financial regulatory authorities have abandoned their opposition

Introduction

On April 22nd, 2021, the South Korean Financial Services Commission (FSC) made a significant decision to allow the Central Bank of Korea to investigate virtual assets. This decision comes after multiple conflicts between the FSC and the Central Bank of Korea regarding which of the two institutions should regulate payment settlement. In the following article, we will discuss how this decision was made, what it means for the Virtual Asset Law, and how it will affect financial stability.

Background

In the initial stages, there were conflicts between the FSC and the Central Bank of Korea regarding the regulation of payment settlement. Both institutions wanted to regulate payment settlement, and this led to a standoff that lasted for months. Additionally, the central bank insisted on having the right to investigate virtual assets, while the FSC wanted to be the sole regulator of virtual assets.

FSC’s Decision

A few weeks after a subcommittee of the Political Affairs Committee of the South Korean Parliament accused the FSC of seeking to become the sole regulator of virtual assets, the FSC made a decision to abandon its opposition to the Central Bank’s acquisition of the “request for data submission right”. The right would allow the Central Bank of Korea to investigate virtual assets, and this decision was a significant step towards incorporating the right of the Central Bank of Korea into the Virtual Asset Law.

Implications

The South Korean National Assembly will continue to develop plans to incorporate the right of the Central Bank of Korea to request data into the Virtual Asset Law. This will allow the Central Bank of Korea to investigate virtual assets, which will enhance the regulation of virtual assets and ensure that there is no financial instability caused by the virtual asset market. The FSC’s decision to waive its requirements means that the Central Bank of Korea can now play a more active role in regulating virtual assets.

Conclusion

The FSC’s decision to allow the Central Bank of Korea to investigate virtual assets is a significant step towards enhancing the regulation of virtual assets in South Korea. It will ensure that there is no financial instability caused by the virtual asset market, and the Central Bank of Korea will play a more active role in regulating payment settlement. As we move forward, we can expect the Virtual Asset Law to be strengthened even further, and this will benefit both the virtual asset market and financial stability.

FAQs

1. What is the Virtual Asset Law?
The Virtual Asset Law is a law that regulates virtual assets in South Korea.
2. Why did the FSC oppose the Central Bank’s acquisition of the “request for data submission right”?
The FSC wanted to be the sole regulator of virtual assets, while the central bank insisted on having the right to investigate virtual assets.
3. How will the FSC’s decision to waive its requirements affect the regulation of virtual assets?
The FSC’s decision will allow the Central Bank of Korea to investigate virtual assets, which will enhance the regulation of virtual assets in South Korea.

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