Cryptocurrency had been celebrated as a financial system that was going to free the world from bottle-neck financial rules and economic devastations. However, it’s currently surrounded by a lot of fear as more and more countries set regulations to monitor or completely ban its transactions.
With the current case being in South Korea, the central bank of South Korea, BOK, is on underway plan to monitor the crypto transactions in that country.
Through a document submitted to Choo Kyung-ho, a representative from the country’s opposition party, the bank sought the authority to regulate through monitoring cryptocurrency transactions by bank users.
“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,” read the document.
This move comes when the Financial Intelligence Unit, a state-run financial agency in South Korea, has been noticing unlawful monetary flow into that country.
Should this request be granted, financial authorities are likely to gain more power to monitor the transactions, something that will force cryptocurrency exchange firms to submit their trading receipts to the tax authorities.
In the previous months, the Governor of the Central bank of South Korea, Mr. Lee Ju-Yeol, disregarded cryptocurrency as a means of exchange, citing it as a volatile currency that could lead to financial instability of that country.
On other platforms, The Reserve Bank of India, RBI, has encouraged users to cut ties with crypto businesses terming the trade as ‘ultra-speculative’ which might lead to money laundering.
In 2018, the Indian bank banned all crypto related transactions, a ruling that was highly challenged by crypto traders in the court of law. In 2020, a top court overturned the bank’s ruling leading to a constant financial woes up to date.
What then does the future hold for cryptocurrency?