Korean FSC chair nominee doesn’t consider crypto a financial asset
Nominee for Chairman of South Korea’s Financial Service Commission (FSC), Seung-beom Koh, has said in a recent statement that he does not regard cryptocurrencies among financial assets.
Seung-beom stated in a press conference that experts from fintech in prominent organizations such as the G20 and International Monetary Fund, among others, are doubtful of seeing virtual currencies as financial assets and that the assets “could not function as a currency.”
In July 2021, South Korean authorities had warned crypto exchanges to register with local authorities latest by September 24, failing which they could face jail time or hefty fines. Koh’s comments come at a time when there is a considerable increase of young investors into crypto trading seeking short-term profits, a report by The Korean Times suggests. In addition, investors in cryptocurrencies also view digital assets as a “fair chance” in buying homes by countering ever-surging property prices.
Koh has also argued that excessive household credit could negatively affect South Korea’s economy. By March 2021, the country witnessed a 9.5 per cent hike in its household credit, reaching 1765 trillion. He stated that the FSC would soon make amendments to existing anti-debt measures, and that it would be done “by mobilizing all available means” if needed.
According to unconfirmed news reports, the South Korean government was planning to shut down a number of crypto exchanges on suspicion of fraudulent operations like collective accounts and borrowed-name accounts.
However, the FCS denied such reports. A representative from the Council shared that 11 exchanges listed on suspicion charges have been ordered to “open up” and “use real-name accounts” to collect deposits.