An ex-central bank official was appointed head of South Korea’s financial watchdog. He expressed doubts about cryptocurrency being recognized as a financial asset. Koh Seungbeom, a former central bank official, stated that his views were in line with those of international institutions when he spoke to a parliamentary committee.
Korean financial regulator candidate declares crypto not currency
Koh Seungbeom, who could be the next chairman for the Korea Financial Services Commission(FSC), also shared doubts over the cryptocurrency’s worth as a financial asset or its monetary status. According to the Korea Herald, he said:
Virtual currencies are not considered financial assets by international organizations like the Group of 20 or the International Monetary Fund. Market experts and many others find it difficult for virtual currencies to be viewed as such.
These comments were made in written responses to questions from the National Politics Committee in Seoul, ahead of Friday’s confirmation hearing. The nomination of Koh, a former member of Bank of Korea’s rate-setting Board, for the top FSC position was made by the Blue houseAugust 5.
According to the report, the candidate reiterated that the government does not recognize cryptocurrency as an asset class. Koh Seung-beom indicated that his stance regarding cryptocurrencies is consistent with the regulator’s current policy of tightening the rules for domestic cryptocurrency exchanges.
Eun Sung Soo, the outgoing chairman FSC, expressed concern about the crypto frenzy in South Korea earlier this year. “Cryptocurrencies, which have no intrinsic value, are not real currency,” he said at a time when the digital coin trade was booming in the country.
Bitcoin (above) has been fueled by the abundance of liquidity during the Covid-19 pandemic.BTCThe English-language newspaper noted that 80 million won was more than $ 71,000 in mid-April. The Korean price was exceeding world rates, a phenomenon known as the “kimchi premium”.
South Korea has decided that it will implement stricter rules in its crypto trading sector. After the expiration the six-month grace period, the revised law regarding special funds came into effect on March 25. It will be implemented in September. It requires cryptocurrency exchanges that they cooperate with national banks to issue real name accounts. They also need to register with the Financial Intelligence Unit under the FSC.
The commission stated that 21 digital asset trading platforms had registered with anti-money laundering bodies by the end of July. These four largest exchanges in Korea – Bithumb Upbit Coinone, Coinone, and Korbit – are the most prominent, while hundreds of smaller ones could be closed. Last month, the FIU warned many foreign exchanges that they had to comply with the new regulations.
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