“The Bank of Korea Digital Currency (CBDC) should be reorganized to punish laws and systems for forgery and alteration” (www.blockcast.cc)

Research results suggest that there is a need to reorganize related laws and systems to prevent the central bank digital currency (CBDC) from being included in virtual assets and to punish forgery and alteration.

The Bank of Korea announced on the 8th that this was the result of an external research service under the theme of’CBDC-related legal issues and directions for enactment and amendment’ from July to December of last year. Seoul National University Professor Jeong Soon-seop, Seoul National University Professor Jeong Jun-hyuk, and Lee Jong-hyuk Professor of Hanyang University participated in this research service.

These professors said in the report, “CBDC is clearly distinguished from virtual assets, but since the specific financial information law defines’virtual asset’ broadly regardless of the issuer’s existence, the’Specific Financial Information Act’ is adopted to prevent CBDC from being included in virtual assets. It is necessary to revise,” he pointed out that “the currency issued by the Bank of Korea refers to the banknotes and coins of Korea, but it is difficult to interpret that CBDC is included in this, so it is necessary to prepare separate rules for issuing CBDC.”

As for the relevant legal issues, ΔThe issuance of CBDC by the Bank of Korea is based on the exclusive issuance of the CBDC and is not subject to the’Electronic Financial Transactions Act’ as it is not for profit purposes ΔPrinciples on various judicial issues such as acquisition and seizure of CBDC It was mentioned that there is a need to prepare a separate civil law, such as the need for enactment and amendment of the criminal law, etc. to punish forgery or alteration of ΔCBDC.

These professors also advised that anti-money laundering regulations for cash may be applied to CBDC, and that the Bank of Korea needs to comply with the’Personal Information Protection Act’ when conducting CBDC-related business.

In this regard, the Bank of Korea said, “This year, we plan to preemptively review plans for reorganization of related laws and systems while conducting pilot system construction and testing in a virtual environment in relation to central bank digital currency as planned.”

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