The Central Bank of South Korea has decided to create a specialized department focused on cryptoassets.
Creation of New Cryptoassets Department
The new cryptoassets department aims to streamline oversight and better understand the risks and opportunities associated with cryptocurrencies. This decision was made in response to the increasing use of cryptoassets both domestically and globally. This move reflects the recognition that digital assets require distinct attention from traditional financial instruments.
Legislative Initiatives on Stablecoin Regulation
Lawmakers in South Korea have been actively working on comprehensive stablecoin regulations driven by concerns over consumer protection and financial stability. The establishment of the cryptoassets department is expected to strengthen regulatory coordination as stablecoin rules are developed. Stablecoins, which are cryptocurrencies pegged to traditional currencies or assets, have gained widespread use but also raised questions regarding transparency and systemic risks.
Investigation into Market Manipulation Cases
South Korean prosecutors have launched an investigation into Kim Keon-hee, the former First Lady, examining her potential connections to a notorious cryptocurrency market maker accused of manipulating altcoin prices and committing large-scale financial fraud. Authorities are investigating Kim's possible connection to cases involving crypto figure Jon Bur Kim (Park), following earlier corruption allegations against her.
The establishment of the cryptoassets department by the Central Bank of South Korea and legislative initiatives on stablecoin regulation indicate a serious approach by the country towards the regulation of digital assets.
