Bank of Korea (BoK) has been granted the authority to investigate local cryptocurrency exchanges operating in the country.
The new power allows BoK to conduct on-site inspections and request financial records to monitor the activities of crypto exchanges more closely.
BoK’s main objective is to maintain price stability in the country and to control and improve the economy. The move comes amid growing concerns over the potential risks posed by cryptocurrencies to financial stability and the economy, including money laundering and tax evasion.
The Bank of Korea is willing to take further steps to curb such occurrences by issuing fines and revoking licenses if digital asset regulations are violated.
The prospective meeting may also speed up the rollout of the country’s digital asset laws. As such, digital asset service providers should know the government’s requirements and ensure that their operations comply before venturing into crypto matters in the region.