South Korea’s monetary policy regulator, the Bank of Korea, plans to track crypto transactions. To do this, it will request the documents of the financial institutions that carry out the transactions.
They will monitor crypto transactions
Contrary to what many think, the truth is that many Blockchains, including Bitcoin, do not offer 100% anonymity. The truth is that it is possible to trace transactions and thereby identify the identity of the person behind the crypto transaction.
Accordingly, according to a report by The Korea Herald, the Bank of South Korea has plans to maintain strict supervision of crypto trading activity through real-name bank accounts.
But, for this, the authorities would have to request the information of the crypto transactions. In this sense, by virtue of article 87 of the Law of the central bank of the country, “We plan to use our legal authority … to request the submission of documents to financial institutions to monitor the volume of cryptocurrency transactions … made through bank accounts.”
Thus, by law the Bank of Korea (BOK) has the ability to acquire records and other miscellaneous materials from financial institutions. This once the Monetary Policy Committee considers it necessary for the implementation of its monetary and credit policies.
Thus, the central bank reported that it distrusts illegal crypto transactions, which cause significant risks to internal monetary control policies.
Therefore, if approved, the monitoring regime could start in September 2021.
Volatility is another concern
In addition to concerns regarding the impact of illegal crypto transactions on a country’s monetary policy, crypto volatility is another serious concern.
The document sent also indicates that “Cryptocurrency has high price volatility … In addition to being a high-risk asset that changes on issues irrelevant to the real economy.”
And, as proof of this inherent volatility, this week the market was stained red after Elon Musk withdrew his support for Bitcoin.
In this way, in the last 7 days, the price of Bitcoin has fallen by 17%. Positioning below $ 50,000.