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South Korea’s central bank is the latest institution to request authority to track cryptocurrency trading operation in the nation.
According to reports, the Bank of Korea intends to keep a close eye on crypto trading activity conducted by real-name bank accounts.
According to a report by The Korea Herald on Thursday, the BOK is seeking authority under Article 87 of the country’s central bank Act, stating: “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.”
The above comments are reportedly from documents submitted by the BOK to lawmakers in the country, with the central bank wary of unlawful crypto transactions causing significant risks to internal monetary control policies.
According to a BOK official, if lawmakers agree, the central bank’s crypto surveillance regime could begin in September.
The BOK’s call for authority to police crypto trading volume operation follows the country’s financial regulators’ proposal for a thorough audit of banks that work with cryptocurrency exchange clients.
As previously reported by Cointelegraph, authorities in South Korea are keen to ensure the complete implementation of the mandatory real-name crypto trading account policy. Indeed, only the “big four” crypto exchanges — Bithumb, Upbit, Korbit and Coinone — are reportedly adhering to the policy.
The Financial Services Commission and the Financial Intelligence Unit are also holding a close eye on the South Korean cryptocurrency industry. The FSC has also requested that its staff disclose any cryptocurrency funds they may have.
Exchanges, custodians, wallet sites, and fund managers, among others, have until September to begin dealing with new financial reporting standards. Companies who refuse to comply with the decision may face up to five years in prison for their executives.
Despite tightening crypto controls, demand in South Korea continues to soar. With Bitcoin (BTC) volume dwindling on many exchanges, traders are apparently preferring altcoins.
South Korea would also impose a 20% capital gains tax on cryptocurrency trade earnings above 2.5 million won ($2,230) starting in January 2022.