South Korea’s central bank has announced the creation of a specialized department focused on cryptoassets, marking a major step in the country’s efforts to regulate digital currencies.
The new cryptoassets department aims to streamline oversight and better understand the risks and opportunities associated with cryptocurrencies as lawmakers prepare to introduce regulations for stablecoins.
The Bank of Korea revealed this initiative in response to the rising use of cryptoassets in the country and globally. This move reflects a recognition that digital assets require focused attention distinct from traditional financial instruments. The department will concentrate on policy development, market monitoring, and collaboration with other regulatory bodies to ensure effective management of the sector.
Lawmakers in South Korea have been actively working on comprehensive stablecoin regulations, triggered by concerns over consumer protection and financial stability. The establishment of the cryptoassets department is expected to strengthen regulatory coordination as these stablecoin rules take shape. Stablecoins, which are cryptocurrencies pegged to traditional currencies or assets, have gained widespread use but also raised issues regarding transparency and systemic risks.
Additionally, the Bank of Korea’s dedicated unit will monitor emerging crypto trends, including decentralized finance (DeFi) and central bank digital currencies (CBDCs). This aligns with South Korea’s broader strategy to balance innovation in the blockchain ecosystem with prudent risk management.
The bank’s announcement follows increasing global interest in crypto regulation, as jurisdictions worldwide seek to set clear frameworks to protect investors while fostering growth. South Korea’s proactive approach places it among the countries aiming for measured but firm oversight of digital asset markets.
South Korean prosecutors have launched an investigation into Kim Keon-hee, the former First Lady, examining her possible connections to a notorious cryptocurrency market maker accused of manipulating altcoin prices and committing large-scale financial fraud.
Authorities are investigating Kim’s potential connection to cases involving crypto figure Jon Bur Kim (Park), following earlier corruption allegations against Kim..
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