Bank of Korea: Cryptocurrencies need to be regulated under the Banking Act and the Capital Markets Act

ChainCatcher news, the Bank of Korea has released a report titled "Assessing the Deficiencies of the Cryptocurrency Market and Its Impact on Global Significant Events." The report states that as the scale of the cryptocurrency market expands, the possibility of impacting the real economy also increases. If activities such as deposits or loans are conducted in the cryptocurrency market similar to those in the traditional financial industry, and face the same risks, then the same regulations as those in the existing industry should be implemented for the crypto market.

The National Assembly of Korea is currently promoting the enactment of regulations through the "Virtual Asset User Protection Act." The Bank of Korea's position is that legislation considering the impact on the financial system is necessary, especially for stablecoins that may be used as a means of payment. It believes that the role of central banks should be expanded by referencing legislative cases from major countries such as the European Union (EU).

A responsible official from the Bank of Korea stated that if the cryptocurrency market has economic functions similar to traditional finance, regulatory rules similar to the "Banking Act" or the "Capital Markets and Financial Investment Services Act" should be formulated. (source link)