Saturday, February 4, 2023

BOK Takes Help Of Country’s Authority In Monitoring Cryptocurrency Transaction

The Bank of Korea submitted a document to the authority asking it to monitor the cryptocurrency transactions which users have made through their real-name bank accounts.

“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,” reads the document submitted to Rep. Choo Kyung-ho of the main opposition People Power Party.

According to Article 87 of the Bank of Korea Act, the central bank has the authority to ask for information from other institutions if the monetary policy committee considers it important for its policy implementation. Apparently, the central bank has said that the unlawful flow of crypto transactions could affect the country’s monetary policies.

If the central bank gets authorization of doing so, the financial authorities in the country might get stronger power to monitor the transactions. Presently, the policymaking Financial Services Commission has asked the financial institutions and cryptocurrency exchanges to help it in monitoring the virtual money transaction.

It is to be noted that presently, the unlawful flow of funds is being tracked by the state-run Financial Intelligence Unit.

Further, it has been reported that from next year, the tax authorities would be collecting virtual money trading receipts from the cryptocurrency exchanges in the country.

The central bank of the country has recently stated that cryptocurrencies are highly volatile in nature, and the way its market is growing day-by-day, it could have a negative effect on the financial system.

A month ago, the BOK Governor, Lee Ju-yeol, pointed out the volatile nature of cryptocurrency and denied its usage as a medium of exchange. 

Meanwhile, a recent announcement by Tesla CEO, Elon Musk, shook the crypto market globally. Musk, in his announcement, said that his company Tesla would not accept the Bitcoin payment, from now.

In just 24 hours of this announcement, the value of Bitcoin plunged 13 percent.

Kim Hyung-joong, the head of Korea University’s Cryptocurrency Research Center, appreciated Musk’s decision and claimed that Tesla CEO has now realized that Bitcoin is highly volatile in nature and the company could not use it as payment.

Leave a Reply

Latest article

Bitcoin (BTC) $ 23,319.25
Ethereum (ETH) $ 1,651.04
Tether (USDT) $ 1.00
BNB (BNB) $ 328.57
USD Coin (USDC) $ 1.00
XRP (XRP) $ 0.409082
Binance USD (BUSD) $ 1.00
Cardano (ADA) $ 0.399535
Dogecoin (DOGE) $ 0.093478
Polygon (MATIC) $ 1.22