Bank of Korea (BoK) has been granted authority to conduct on-site inspections of local crypto exchanges, including requesting financial records from them, according to a recent report.

This development follows growing concerns over potential risks posed by cryptocurrencies to financial stability and the economy, such as money laundering and tax evasion.

The bank’s new rights will allow it to closely monitor the activities of these exchanges and even issue fines or revoke licenses if they violate digital asset regulations.

This move is expected to speed up the rollout of the country’s digital asset laws, which significantly depend on the government’s stance on the industry.

Digital asset service providers should ensure their operations comply with government requirements before venturing into crypto matters in the region.