Lee Eok-Won, the nominee for the chairman of the South Korea’s Financial Services Commission (FSC), has made harsh critical comments about cryptocurrency.
According to a Monday Report Through local News Outlet News1, Eok-Won said “Crypto has intense price volatility, no financial function” and no “worthless value.” He also wrote the answers to the questions that lawmakers submitted before his confirmation hearing that “virtual possessions differ from traditional financial products such as deposits and security that they have no intrinsic value.”
Eok-Won explained that volatility of cryptocurrencies makes it difficult to think of them acting as a store of value or exchange of exchanges. The report records that comments attract criticism From the South Korean crypto industry.
An anonymous South Korean crypto company officer, quoted by News1, said crypto that lacks intrinsic value is wrong “when US and global corporations hold it as a strategic reserve.” The official announced that “assets such as Bitcoin have a digital utility supported by the security and transfer of blockchain.”
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The head of regulation in the FSC regulation of the future
Eok-won also stands against allowing crypto investments through pension funds. He explained that “given the high volatility and speculation of virtual possessions, there is a widespread concern about the use of retirement or personal pension funds, intended to ensure a steady income in old age, to invest in them.”
The FSC’s nominee also noted that when it comes to funds exchanged by the cryptocurrency exchange (ETF), “there are both expectations and concerns.” He said the regulatory body he was going to would “examine global regulations of regulations” and determine the implementation and timeline approach to consulting lawmakers.
However, when it comes to Stablecoins, Eok-Won says the FSC will aim to create opportunities for change while ensuring adequate care. Followed by this late June reporting Eight major banks in South Korea work in a stablecoin Backed by the winner after the newly elected President Lee Jae-Myung in the campaign in A List of Crypto Promises – Includes allowing the release of stablecoins.
South Korea Ministry of SME and also startups Revealed plans to lift restrictions that prevent crypto -related businesses from qualified as adventure companies in early July. This will allow Crypto companies to be classified as adventure businesses for the first time since they were excluded in 2018.
South Korean young people in crypto
These comments come after data from the end of March has shown that Crypto Exchange users in South Korea exceed 16 millionFollowing a climb to their number after the election of President Donald Trump. This represents more than 30% of South Korean’s total population.
However, some suggest that this is not just the result of many local populations who deeply believe in the potential of blockchain technology. In the last part of the June Crypto event, Eli Ilha Yunene, Chief Product Officer at the Quantum Machine Learning Startup Anzaetek, suggested that the “motive was not from (…) a web3 belief (…) as in the west.”
Yane suggests that, instead, the South Korean crypto adoption is a consequence of financial desperation suffering from the younger generation. According to him, this situation pushed them to look for “fast money.”
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