The main nominee of the Financial Services Commission of South Korea (FSC), Lee Eok-Won, faces the criticisms of the cryptographic community after its claim that cryptocurrencies have no value.
In the written responses presented before his confirmation hearing, Lee declared that cryptocurrencies lack intrinsic value, unlike traditional financial products, such as deposits and actions.
Lee argued that cryptocurrency volatility prevents them from fulfilling the essential functions of a currency, including service as a reserve of value or means of exchange.
The nominee of the South Korea FSC broken down with a “antichrypto” position
This position is aligned with the position of the South Korean government that virtual assets lack intrinsic value and cannot be classified as a currency or a financial product.
Lee also expressed reservations on pension and retirement funds that invest in cryptographic assets, citing concerns about market volatility and speculation.
Regarding the approval of a Bitcoin Spot ETF, Lee recognized the different expectations and concerns about its impact, stating that the Korean authorities will consider global regulatory trends before determining the implementation methods and schedules in consultation with the National Assembly.
However, Lee indicated support for the regulation of Stablecoin, promising “sufficient complementary measures while creating innovation opportunities.”
According to the support of President Lee Jae-Myung, South Korea is developing regulations for the stable of local mountain currencies.
The virtual asset industry, however, has criticized Lee’s position as outdated.
The similar arguments of “without intrinsic value” were common among figures such as the governor of the Bank of England Andrew Bailey and the JPMorgan CEO, Jamie Dimon, from 2017 to 2021, but now they are considered inappropriate given the greatest adoption of cryptocurrencies.
An Xangle executive, a Blockchain data service provider, specifically criticized Lee Eok-Won’s statement as one born of “ignorance and lack of understanding.”
The executive said that cryptographic critics often have traditional actions, such as Apple, while questioning the intrinsic value of cryptography.
He compared the traditional PayPal payment infrastructure with the Blockchain Hyperliquid platform, noting that Hyperliquid made $ 1.5 billion in Token repurchases this year of the revenue generated, similar to shares of shares by PayPal and Apple.
He added that in last month, the main projects such as Tron generated $ 430 million, Ethena $ 68 million and bomb.
The South Korean government squeezes the adoption of cryptographic
However, it seems that South Korea as a whole is still cautious with cryptographic and virtual assets.
In July, the Financial Supervision Service (FSS) issued an orientation that ordered national companies to limit their exposure to cryptography actions, including those of Coinbase and the strategy, in ETF portfolios.
The directive reinforces the administrative orientation of South Korea of 2017 on virtual currencies, which restricts financial institutions to carry out, buy or invest in virtual assets.
Similarly, in August, the South Korean FSC issued a new administrative orientation for exchanges, instructing them to stop the operations that allow users to borrow against cryptocurrencies or fiduciary deposits.
Despite regulatory precaution, retail investors in South Korea show a growing interest in cryptography.
Korean investors sold a net of $ 657 million of Tesla shares during August, the largest departure since early 2023, while pivoting to cryptographic investments amid disappointment with the manufacturer of electric vehicles.
According to Bloomberg, South Korean investors now favor volatile cryptographic proxies, such as Bitmine immersion technologies, which attracted $ 253 million in net tickets in August.
The data of the International Finance Korea Center show that retail investors reduced their purchases from large-American companies of a monthly average of $ 1.68 billion (January-April) at $ 260 million in July.
It is not yet clear if the administration of President Lee Jae-Myung will grant the wishes of those who are willing to accept the risks associated with cryptography assets by opening doors through cryptographic reforms that could facilitate the participation of South Korea in the digital asset sector.
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