South Korea’s central bank appears to be granted the right to investigate virtual assets after the Financial Services Commission (FSC) dropped its opposition to the move. According to reports, the FSC dropped its opposition to the central bank’s bid after the central bank was accused of trying to become the country’s sole regulator on virtual assets.
Attacks on Virtual Assets Management and Regulation”
The Bank of Korea (BOK) is likely to get its wish for a virtual assets investigation after the Korea Financial Services Commission dropped its opposition to the central bank’s “right to request data submission”. According to local reports, the FSC’s decision comes weeks after a subcommittee of the Korean parliament’s political affairs committee accused the regulator of trying to become the sole regulator of virtual assets.
according to the report. FSC’s decision to withdraw its request came as the Korean National Assembly is reportedly moving forward with plans to include South Korea’s right to request data in the Virtual Assets Act.
Until accepting the central bank’s request, the FSC has repeatedly clashed with South Korea over which side should oversee the settlement. The central bank, on the other hand, has insisted that it be granted the right to investigate digital assets because the risks arising from virtual asset markets ultimately threaten financial stability.
FSC’s exclusive ambitions
However, according to an April 20 report, accusations about the FSC’s desire to be the sole authority on virtual assets and its willingness to ignore the ruling and opposition parties in its pursuit may have forced the regulator to make concessions.Regarding the FSC’s intentions, on March 28, South Korean Rep. Kim Han-kyu also made a similar point.
“The Financial Services Commission acknowledges the need for the Bank of Korea to have the right to request data, but refuses to include it in the bill,” Kim said at the time.
But despite seeming to have capitulated in its long-standing battle with the central bank, the FSC is likely to win the right to investigate virtual assets, the report found. According to the report, much of the proposed legislation on virtual assets seeks to give the FSC the authority to investigate “unfair transactions.”
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