Now S Korean Central Bank can investigates Crypto exchanges: Report
Now The Bank of Korea (BoK) has full authority to investigate any local crypto company in the country.
South Korea is a highly crypto-friendly region in the world. Since late 2021, only less than a dozen of crypto exchanges are allowed to provide full crypto-fiat paired supported trade services, which hints at the strict crypto regulatory system in the jurisdiction of South Korea.
According to local news media reports, The Bank of Korea (BoK) received full regulatory approval to start any kind of on-site investigation against any crypto exchange.
This regulatory authority in the hand of BoK will help it to find out crypto-linked illicit financial activities and also to ensure that crypto-related financial activities are not impacting the fiat financial system negatively.
With all such abilities, BoK will maintain the stability of prices & economy in the country. In short, the South Korean Central Bank will keep the Crypto financial stability risks away from the country.
If in any investigation, BoK will find any illicit financial activities or something suspicious then it can take enforcement action & also fine them. The most important authority under BoK is to revoke the licence of crypto companies, in case of high level illegal activities.
High crypto tax
In 2022 South Korean tax agency was planning to bring a 20% tax on crypto traders but later the plan was postponed to 2023 & further 2025 citing the lack of maturity of this innovative sector.
Many reports noted that 2022 was full of election time and it was very risky for the democratic party to bring such a decision. To grab support from every community, politicians pushed high crypto tax rules away from elections.
It has been found that Korean enforcement agencies are now more strict against crypto frauds, especially after the downfall of the Terra crypto project, which was founded by the Korean crypto team Terra Labs. In May 2022, Terra (Luna) & TerraUSD stablecoin collapsed badly & millions of people lost their funds.
Read also: Now Binance exchange is fully accessible in Russia (Report)
