South Korea’s central bank (BoK), has launched a cryptocurrency task force to investigate the technology’s effects on the financial system.
A report coming from local news agency Pulse News states that the bank said: “the task force will get assistance from eight departments, including the economic stability and monetary policy units, to investigate on the impacts from digital currency.”
The new association will be managed and assisted by BoK’s payment and settlement department and will be overseen by Shin Ho-soon, deputy governor of central bank. Bank of Korea is also attempting to explore a central bank-backed digital currency as part of the ongoing project.
The declaration follows concerns raised in South Korea about how the drastic growth in cryptocurrency prices could effect the conventional financial system of the orients.
Earlier this week, six unnamed banks in South Korea were scrutinized by the Korean Financial Intelligence Unit and the Financial Supervisory Service for their involvement with the country’s bitcoin exchange system. The regulatory body in charge of the process said they were merely studying to see whether the banks are really complying with their anti-money laundering (AML) obligations when transacting with authorized cryptocurrency exchanges.
The Korean government already said last month that it would move to apply more scrutiny amid growing trade volume at the exchanges, including a possible ban on anonymous trading. Earlier today, new reports suggested that the government of South Korea is intensifying its moves against the country’s bitcoin exchanges.