Cryptocurrencies are not considered financial assets by Seung-beom Koh, a candidate for chairman of the FSC. He also said that fintech experts across the globe “find it difficult to see virtual currencies as a financial asset.”
Fintech specialists from significant organizations such as the G20, the International Monetary Fund, and others “find it difficult to understand virtual currencies as a financial asset, and believe they could not function as a currency,” Seung-beom stated in a news conference with local journalists.
According to The Korean Times, Seung-views beom’s correlate with the continued rise in crypto trading among young investors, who typically invest for short-term gains.
Cryptocurrencies are also seen by investors as a legitimate way to buy a home while avoiding increasing property costs.
Excessive household credit, according to Koh, could have a negative influence on South Korea’s economy. The country’s household credit increased by 9.5 percent in March 2021, reaching 1,765 trillion won (about $1.52 trillion). Koh suggested the following as a way to reduce rising household debt:
“The FSC will push ahead with existing anti-debt measures and come up with additional steps, if needed, by mobilizing all available policy means.”
Authorities in South Korea apparently planned to shut down a number of cryptocurrency exchanges on suspicion of operating bogus group accounts and borrowed-name accounts.
The FCS, on the other hand, disputed that crypto exchanges had been suspended. The 11 exchanges in question, according to the spokesman, “are required to open and use real-name accounts for the purpose of collecting deposits.”
South Korean authorities warned crypto exchanges last month that failing to register voluntarily with local authorities by September 24 could result in jail time or substantial fines.
