South Korea Will Regularly Inspect Crypto Risks With New Monitoring Tools
A South Korean financial supervision service plans to develop a tool to monitor crypto and regularly inspect the risks associated with crypto assets. He made the disclosure at a conference held on Monday by FSS governor Lee Bok-hyun on the relationship between the crypto market and the traditional financial market, and local media quoted him as saying that the financial supervisory service will open its doors to virtual asset markets this year. It is making plans for different aspects for risk management and is trying to do its further work on the basis of that. Regarding tools for monitoring crypto, Lee explained that supervisory authorities currently lack the necessary or sufficient data to identify risks related to cryptocurrencies even as interconnection between crypto markets and traditional financial markets is expected. Furthermore, the chief adds that securing data is considered more important than anything else to respond to risks in the virtual assets market, and that regulators plan to introduce disclosure obligations related to new cryptos. is building. The governor further states that no domestic companies provide services directly related to cryptocurrencies and that despite the development of the virtual assets market, its direct impact on the stability of the financial system is still less visible.
Nevertheless, the size of the domestic crypto market should expand significantly and its impact on financial stability could grow exponentially, as warned by the chief. Regulators around the world have warned that there is an increasing correlation between traditional financial markets and markets, and that following the collapse of the Terra-Luna ecosystem, many countries are considering “full regulatory measures for stablecoins”, according to the chief. are starting”. the new regulation will definitely define cryptocurrency as the new level of achievements for investors and company profiles.