Talking at the National Assembly review of the Bank of Korea (BOK), the nation’s national bank, BOK senator Lee Joo-yeol was supposedly asked “is it conceivable to see virtual cash as a money?”. As per Yonhap News, Lee reacted to state “it is hard to take a gander at [virtual currencies] as cash by the case [definition] of Bank of International Settlements (BIS). The BIS is a worldwide money related association situated in Switzerland and possessed by 60-part national banks far and wide, seen as a ‘bank of national banks’.
Lee additionally communicated the national bank’s present authority position on the control of digital forms of money, when bills are being set up to direct – as a result sanction – cryptographic forms of money like bitcoin and ethereum.
The national bank official expressed:
Regulation (of virtual currencies) is appropriate because it is regarded as a commodity. It [cannot be] regulated at the level of a currency.
In any case, the national bank isn’t taking a gander at upholding directions by and by, Lee uncovered. “It isn’t a circumstance for the Bank of Korea to make a move at introduce.”
In November 2016, South Korean built up an advanced cash team – a gathering involving the nation’s national bank, monetary and securities controllers and specialists close by computerized money organizations – to concentrate on administrative and permitting parameters for bitcoin trades and more extensive directions for the advanced money industry. Regardless of month to month gatherings to this end, the team did very little advance with an inability to achieve an accord toward a bound together approach directions. As CCN announced before in June, the members ‘neglected to concur on whether virtual monetary forms ought to be incorporated into frameworks at the present time and how the frameworks will function in the event that they are incorporated.”
The Financial Supervisory Service (FSS), the nation’s money related controller, made the outstanding move of forbidding beginning coin offerings (ICOs) following a meeting of the team, prompting fears of a crackdown on the nearby digital money exchanging market a-la China. Courageous, South Korea stays among the world’s biggest exchanging markets for bitcoin.
The national bank was likewise condemned for its “poor” research on virtual monetary forms amid the review. Lee attested that the bank will accomplish more to inquire about virtual monetary forms.
The national bank boss expressed:
We also refer to a lot of virtual currency research in Sweden and other countries.” The Bank of Korea will also put more emphasis on virtual currency research… The possibility that the central bank’s digital money will be issued in the near future is likely to become a means of payment specialized for interbank transactions (domestic transactions) or central bank transactions (domestic transactions).