The Bank of Korea reportedly has plans to maintain strict oversight on crypto trading activity via 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, the central bank’s crypto monitoring regime could begin in September if approved by lawmakers.
The BOK’s request for powers to police crypto trading volume activity comes on the heels of financial regulators in the country demanding a full audit of banks that deal 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.
Both the Financial Services Commission and the Financial Intelligence Unit are keeping a watchful eye on South Korea’s crypto market. The FSC has even asked its employees to declare their cryptocurrency holdings.
Crypto service providers including exchanges, custodians, wallet platforms, and asset managers, have until September to begin complying with new financial reporting requirements. Companies that fail to adhere to the ruling could see their executives face up to five years in jail.
Despite the tightening of crypto regulations, demand continues to skyrocket in South Korea. Traders are reportedly favoring altcoins with Bitcoin (BTC) volume declining on several exchanges.
South Korea will also introduce a 20% capital gains tax on crypto trading profits above 2.5 million won ($2,230) beginning in January 2022.