KoreaTechToday - Korea's Leading Tech and Startup Media Platform
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government
  • Lists
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government
  • Lists
No Result
View All Result
KoreaTechToday - Korea's Leading Tech and Startup Media Platform
No Result
View All Result
Home Cryptocurrency

Bank of Korea to Take Traditional Approach to Crypto Regulations

 95 total views,  1 views today

Kyung Mi by Kyung Mi
PUBLISHED: May 19, 2023 UPDATED: May 19, 2023
in Cryptocurrency
0
Bank of Korea to Take Traditional Approach to Crypto Regulations

The Bank of Korea (BOK), the central bank of South Korea has shared its stand on implementing similar regulations in the cryptocurrency market as those applied to traditional banks. In a recent report, the BOK expressed concerns that any potential financial turmoil resulting from cryptocurrency trading could have far-reaching consequences for the real economy. To mitigate these risks, the BOK encourages introducing a comparable level of regulation to safeguard the financial system’s stability.

As part of its efforts to oversee the evolving and often volatile cryptocurrency industry, South Korea is in the process of formulating regulations for digital assets, including cryptocurrency trading. These forthcoming regulations aim to establish a comprehensive framework for supervising this rapidly developing sector, addressing the need for effective oversight and risk management.

“If the usage of stablecoins widens, it will have an impact on the overall financial stability, including the current monetary and payment systems,” stressed the central bank. They further emphasized the importance of enhancing regulatory efficiency through the establishment of a close cooperation system for crypto monitoring, information collection, and supervision by financial authorities.

This call for regulation arises from concerns about the possibility of similar crypto crises like the Terra-Luna collapse and FTX bankruptcies happening again, leading to substantial losses for investors.

The Bank of Korea (BOK) has focused on the need for a comprehensive response system to address potential risks and spillover effects between cryptocurrency assets and the traditional financial system. In the assessment of the crypto asset market’s vulnerability and its implications during significant global events, the BOK highlighted that the market exhibited vulnerabilities similar to those observed in the traditional financial market.

The lack of regulatory guidelines has hindered investors from taking appropriate actions to address their losses. The BOK’s report also highlighted vulnerabilities in the domestic market, citing instances like the bankruptcy of a crypto lending platform and the depreciation of algorithmic stablecoins TerraUSD and Luna, along with the insolvency of Celsius, Three Arrows Capital (3AC), and FTX within the crypto industry.

In the report shared by BOK officials, it stated, “Authorities should force crypto business operators to submit their external audit documents, and they need to share the information.”

By enhancing regulatory efficiency and fostering information transparency, financial authorities can establish a robust system for monitoring, collecting data, and supervising the crypto industry. These measures aim to mitigate potential spillover risks and ensure the long-term stability of the financial ecosystem.

What’s your thoughts?
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
+1
0
Tags: Artificial IntelligenceBank of KoreaBlockchaincryptocryptocurrency

Related Posts

SK Telecom Teams Up with Aptos and Atomrigs Lab for Secure Web3 Experience
Cryptocurrency

SK Telecom Teams Up with Aptos and Atomrigs Lab for Secure Web3 Experience

November 7, 2023
SK Telecom Partners with Team Blackbird to Launch User-Friendly Crypto Wallet
Cryptocurrency

SK Telecom Partners with Team Blackbird to Launch User-Friendly Crypto Wallet

October 20, 2023
Korea to receive its first-ever crypto-backed loan service
Cryptocurrency

Korea to receive its first-ever crypto-backed loan service

November 25, 2021
Two-third Crypto Exchanges in South Korea on the verge of closure
Cryptocurrency

Two-third Crypto Exchanges in South Korea on the verge of closure

September 16, 2021
national-assembly-building
Cryptocurrency

First Comprehensive Cryptocurrency Laws Passes: Startup Victory

March 6, 2020
No Result
View All Result

Most Popular

  • Lotte Group Eyes Support for Israeli Startup Companies

    0 shares
    Share 0 Tweet 0
  • Top South Korean Tech Products to Look Out for in 2021

    0 shares
    Share 0 Tweet 0
  • Samsung Unveils 2024 Generative AI Roadmap for Home Appliances

    0 shares
    Share 0 Tweet 0
  • 5 Best Korean to English Translation Apps

    0 shares
    Share 0 Tweet 0
  • “RZ-001,” a Breakthrough Anti-Cancer Drug by Rznomics, Accelerates FDA Fast Track for Brain Cancer Therapy

    0 shares
    Share 0 Tweet 0
  • Top Nine Mobile MMORPG in South Korea for 2020

    0 shares
    Share 0 Tweet 0
  • Naver Corporation Shifts to Intel amid Nvidia GPU Prices and Supply Delays

    0 shares
    Share 0 Tweet 0
  • Top 6 Gen AI Projects from South Korean Tech Giants

    0 shares
    Share 0 Tweet 0
  • LG and Hyundai Collaborate In-Car Entertainment with WebOS for Automotive

    0 shares
    Share 0 Tweet 0
  • Challenging TSMC Dominance, Samsung Unveils SAINT for Compact AI Semiconductors

    0 shares
    Share 0 Tweet 0

PRODUCTS

TESSAN Germany France Travel Power Adapter

Lonely Planet Korea 12

Korean Snack Box Variety Pack

OSULLOC Lovely Tea Gift Box Set

TOPICS

  • Naver
  • Kakao
  • Nexon
  • Netmarble
  • NCsoft
  • Samsung
  • Hyundai

FREE NEWSLETTER

FOLLOW US

  • About Us
  • Cookie policy
  • homepage
  • Privacy Policy
  • Terms of Use

Copyright © 2023 KoreaTechToday | About Us | Terms of Use |Privacy Policy |Cookie Policy| Contact : press@koreatechtoday.com |

No Result
View All Result
  • Topics
    • Naver
    • Kakao
    • Nexon
    • Netmarble
    • NCsoft
    • Samsung
    • Hyundai
    • SKT
    • LG
    • KT
    • Retail
    • Startup
    • Blockchain
    • government
  • Lists

Copyright © 2023 KoreaTechToday | About Us | Terms of Use |Privacy Policy |Cookie Policy| Contact : press@koreatechtoday.com |