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Bank Of Korea Seeks Authority To Monitor Cryptocurrency Transactions

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• Measures could be in place by September

• Cryptocurrency exchanges will require to furnish receipts to tax authorities

Cryptocurrency and its decentralized finance happen to be a double-edged sword with supporters and sceptics in equal measure. On the one hand, the distributed ledger is hailed as a panacea for all the problems with the present system, lack of scrutiny and regulatory control are often the arguments put against cryptocurrencies by Central Banks.

Therefore there are efforts to find some form of regulatory mechanism on cryptocurrencies. The latest in this trend is the central Bank of Korea which is seeking authority to monitor cryptocurrency transactions made by the user through his real-name bank accounts.

Monitoring the number of cryptocurrency transactions

koreaherald.com quoted a document submitted by Bank Of Korea, which underlines monitoring the number of cryptocurrency transactions of users through bank accounts. It sought to use its legal authority and asked for documents from financial institutions. Bank Of Korea submitted the document to Rep. Choo Kyung-ho of the People Power Party.

koreaherald.com adds that Article 87 of the Bank of Korea Act vests the BOK to seek materials from other financial institutions. It can ask for details in line with the implementation of the general monetary and credit policies.

The Bank of Korea also added that the unwarranted flow of Cryptocurrency could undermine monetary policies. The process, according to a BOK official, can begin as early as September.

Cryptocurrency exchanges have to submit receipts

At present, the screening of virtual money transactions is done by the state-run Financial Intelligence Unit. If the Bank of Korea gets the legal powers to do so, it will increase monitoring power to the financial authorities. Cryptocurrency exchanges will require the law to submit receipts from virtual money trading to the tax authorities starting next year.

The cryptocurrency world faces increased volatility, especially after Tesla CEO Elon Musk’s announcement that Tesla will no longer accept Bitcoin(BTC) as payments. The reason put forth is the impact on the environment Bitcoin(BTC) mining will have. The news led to a fall of 13% in Bitcoin9BTC) values.

Koreaherald.com quoted the head of Cryptocurrency Research Center, South Korean university, who said that the volatile character of Bitcoin(BTC) must have finally sunk in Musk’s mind. However, Musk is also considered one of the biggest promoters of Cryptocurrency.

Steve Anderrson
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