Bank of Korea wants to monitor all the Crypto trading activities. Moreover, it cites various kinds of monetary risks involved. Thus, South Korea’s Central Bank has become the latest entity to seek powers to monitor the country’s Crypto trading activities.
Maintain Strict Oversight
The Bank of Korea reportedly has several plants to maintain strict oversight on trading activity through real-name bank accounts. According to the Korea Herald report on Thursday, the bank is seeking Authority under article 87 of the country’s Central Bank act.
Moreover, the bank stated that they have plans to utilize the legal Authority by requesting document submission from Financial Institutions. In addition, the bank said that it helps them monitor the volume of cryptocurrency transactions through the bank accounts.
However, these comments are reportedly from the bank’s documents to the lawmakers in the country. However, the Central bank is wary of unlawful Crypto transactions causing significant risks to the internal monetary control policies.
Lawmaker’s Approval
One of the BOK’s officials said that the Central Bank’s Crypto monitoring regime could begin in September if lawmakers approve it. Moreover, the Central bank’s request for powers to police Crypto trading volume activities comes on the heels of financial regulators in the country.
The BOK is demanding a full audit of all the banks dealing with cryptocurrency exchange clients. According to Cointelegraph’s previous report, South Korean authorities are keen to ensure the complete implementation of the real mandatory name Crypto trading account policy.
However, the four big Crypto exchanges, Bithumb, Upbit, Korbit, and Coinone, are only reportedly adhering to the policy. The Financial Service Commission, along with the Financial Intelligence Unit, are keeping a watchful eye on the Crypto market.
In addition, FSC asked its employees to declare their holdings on cryptocurrency. All the Crypto service providers, including exchanges, custodians, wallets, platforms, and asset managers, have time till September to start complying with the new financial reporting requirements.
Companies that fail to adhere to these rules could see the executive face up to 5 years in jail. The Crypto demand continues to skyrocket in South Korea despite the tightening of the regulations. Traders are reportedly favoring Altcoins, with Bitcoin volume declining on various exchanges.
Taxation
South Korea is also planning to introduce a 20% capital gains tax on all Crypto trading profits above 2.5 million won, beginning in January 2022.
