Lee Eok-Won, the candidate for the president of the Financial Services Commission of South Korea (FSC), has made comments with force on the cryptocurrency.
According to a report on Monday of the local news News1, Lee said that “cryptography has extreme price volatility, it lacks monetary function” and “has no intrinsic value.” He also wrote questions presented by legislators before his confirmation hearing that “virtual assets differ from traditional financial products such as deposits and values in which they do not have intrinsic value.”
Lee explained that the volatility of cryptocurrencies makes it difficult to imagine them to act as a reserve of value or means of exchange. The report indicates that comments attracted criticism of the crypto of the South Korean industry.
An anonymous official of the cryptographic company of South Korea, cited by News1, said that cryptography that lacks intrinsic value is incorrect “when US and global corporations keep it as a strategic reserve.” The official said that “assets as Bitcoin have digital utility backed by blockchain safety and transferability.”
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Perspectives of the main cryptographic of FSC FSC
Lee also adopted a position against allowing cryptographic investments for pension funds. He explained that “given the high volatility and speculative nature of virtual assets, there is a general concern for the use of retirement funds or personal pensions, which are intended to guarantee a stable income in old age, to invest in them.”
The nominated FSC chief also pointed out that, when it comes to funds quoted in cryptocurrency exchange (ETF), “there are expectations and concerns.” He said that the regulatory body will direct “review the global regulatory trends” and determine the implementation approach and the schedule in consultation with legislators.
Even so, when it comes to Stablecoins, Lee said that the FSC would seek to create innovation opportunities while guaranteeing adequate safeguards. This follows the reports of the end of June that eight main banks in South Korea are working on a stablcoin backed by the WAN after the newly elected president Lee Jae-Myung campaigned in a list of cryptographic promises, including allowing the broadcast of Stablcoins.
South Korea’s SME and Startup Ministry also announced plans to raise restrictions that prevent companies related to cryptographic qualifying as risk companies in early July. This would allow cryptographic companies to be classified as risk businesses for the first time since they were excluded in 2018.
South Korean youth bets on cryptography
These comments occur after the data at the end of March showed that Crypto Exchange users in South Korea have exceeded 16 million, after an increase in their number after the elections of the president of the United States, Donald Trump. This represents more than 30% of the total population of South Korea.
Even so, some suggest that this is not simply a consequence of many among the local population that deems deeply in the potential of Blockchain technology. During a cryptographic event of the end of June, Eli Ilha Yune, director of products of the Automatic Learning Startup of Anzaetek, suggested that “the reason does not come from […] A belief on web3 […] as in the west. “
Yune suggested that, on the other hand, the cryptographic adoption of South Korea is a consequence of financial despair that affects the younger generation. According to him, this situation pushes them to look for “fast money.”
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