South Korea Announces a New Monitoring Tool to Detect Risks

• South Korea’s FSS has proposed a cryptocurrency monitoring tool.
• To detect risks, the Crypto monitoring tool is utilized.

South Korea’s Financial Supervisory Services (FSS) has announced a proposal to establish a cryptocurrency monitoring tool. That will be integrated into the identification verification system by the end of January. As well as penalizing cryptocurrency investors who refuse to validate their identities.

FSS governor Lee Bok-hyun officially announced this on Monday at a lecture on the interconnectivity of the crypto and traditional markets. In addition, he added that the Financial Supervisory Service is considering a number of initiatives this year. And also to address the risk management of virtual assets.

South Korean FSS Governor About Crypto Monitoring Tool

The supervisory authority now lacks data to identify possible threats from crypto. According to Lee, despite the fact that the link between the crypto market and the traditional financial system is projected to grow.

Securing data is more crucial than anything else in order to respond to threats in the virtual asset market. And the FSS chief has indicated that the regulator is seeking to implement new crypto-related disclosure requirements. Furthermore, the FSS governor stated that no domestic financial company directly provides crypto-related services.

Lee also stated that

“Despite the rise of the virtual asset market, the direct influence on financial system stability remains limited.”

Lee has also warned that if the local crypto market grows sufficiently, the impact on financial stability will be severe. Furthermore, regulators around the world have warned that the interconnectivity between the traditional financial industry and the crypto market is growing. Following the collapse of the Terra-luna ecosystem, a lot of nations are adopting full-fledged regulations. And it measures for stablecoins, according to the FSS chief.

Additionally, Currently, a worldwide petition in South Korea opposing severe bitcoin laws has surpassed 200,000 signatures, requiring the government to respond within 30 days. The petition makes no objections to the requirement for real-name accounts or the introduction of a cryptocurrency tax system.

A national policy committee is also apparently scheduled for January 18, 2018. During this, the government will particularly evaluate whether to shut down all local virtual currency exchanges or simply those that have violated the law.