Seung-beom Koh, a nominee for chairman of South Korea’s Financial Service Commission (FSC), does not regard cryptocurrencies as a financial asset.
In a press meeting with local journalists, Koh said that fintech experts from prominent organizations such as the G20, the International Monetary Fund and others “find it difficult to see virtual currencies as a financial asset, and think they could not function as a currency.”
Koh’s comments coincide with the ongoing surge in crypto trading among young investors who primarily invest for short-term profits, according to The Korean Times. Investors also see cryptocurrencies as a fair chance to buy homes by countering skyrocketing property prices.
Koh also pointed out that excessive household credit could negatively impact South Korea’s economy. As of March 2021, the country’s household credit witnessed a 9.5% hike to reach 1,765 trillion Korean won, approximately $1.52 trillion. As a means to curb the increasing household debt, Koh said:
“The FSC will push ahead with existing anti-debt measures and come up with additional steps, if needed, by mobilizing all available policy means.”
South Korean authorities were reportedly planning to shut down numerous crypto exchanges under the suspicion of operating fraudulent collective accounts and borrowed-name accounts.
However, on Aug. 9, the FCS reached out to Cointelegraph to deny such claims of suspending crypto exchanges. A representative stated that the 11 exchanges in question “are required to open up and use real-name accounts for the purpose of collecting deposits.”
Just last month, South Korean authorities warned crypto exchanges to voluntarily register with local authorities by Sept. 24 or risk facing jail time or hefty fines.