BANKING TECHNOLOGY | Staff Reporter, Korea

South Korea unveils task force to monitor and study cryptocurrencies

This will help banks in risk management, digital currency, and blockchain.

Korea's Financial Supervisory Service (FSS) launches a task force to guide banks in dealing with cryptocurrencies and research blockchain technology. Moody's Credit Outlook reports that the studies will help banks that deal with digital currency and blockchain, whilst the FSS task force will aid banks in risk management.

Here's more from Moody's:

The task force will consist of various teams from FSS as well as external experts from academia, research institutions and the blockchain industry. The task force’s immediate goal is reviewing banks’ adherence to anti-money laundering rules, and the verification of real owners of digital currency accounts starting this month.

From 12-16 January, FSS conducted on-site inspections of six banks that have relatively high dealing with cryptocurrency exchanges to assess the banks’ internal controls. The banks are Industrial Bank of Korea, Kookmin Bank, Korea Development Bank, NongHyup Bank, Shinhan Bank, and Woori Bank.

Cryptocurrency trading took Korea by storm last year and the Korean government has voiced its concern over speculative trading. The Ministry of Justice initially proposed banning cryptocurrency exchanges in Korea, then softened its stance, citing the need for more inter-ministry coordination. With rising regulatory risk, several banks suspended transactions with digital accounts. When regulatory guidance is established, we expect it to enhance transparency and promote banks’ utilization of blockchain technology.

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