South Korean Top Regulator Considers Easing Cryptocurrency Regulations
The main regulatory body of cryptocurrencies in South Korea has a new chief who has just been approved by the country’s president. He is a known “activist and reformist” and has reportedly announced that he will consider relaxing crypto regulations to help businesses grow in this sector.
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New FSS Chief to Relax Crypto Regulations
The South Korean Financial Supervisory Service (FSS) will have a new governor as of this Tuesday. The country’s President Moon Jae-in has approved the nomination of Yoon Suk-heun to lead the government agency overseeing cryptocurrency regulations after the former FSS head Kim Ki-sik stepped down from the post.
Yoon’s nomination was submitted by the Financial Services Commission (FSC), which the FSS falls under. He will officially start his work as FSS chief on May 8, the Korea Times reported, elaborating:
Governor Yoon Suk-heun said the country’s top financial regulator will consider relaxing cryptocurrency regulations.
He has previously “hinted at a possible adjustment of regulations that have been applied to the cryptocurrency market,” the news outlet noted, adding that Yoon is known as an “activist and reformist.”
Yoon’s Approach to Crypto
Yoon told reporters that “regarding cryptocurrencies, there are some positive aspects,” emphasizing that “there are a lot of issues that need to be addressed and reviewed. We can figure them out but gradually.”
Clarifying the roles of the FSS and the FSC, he explained that “The FSS will collaborate with the FSC when an inspection on policies and financial institutions has different configurations associated with different scopes. FSC inspects policies, while the FSS examines and supervises financial institutions but with the oversight of the FSC.”
At an industry event on January 31, he expressed his understanding of the government’s position on cryptocurrencies, given their high volatility. However, he was quoted affirming that “the government is saying cryptocurrencies are neither currency nor financial assets…[that] is hard to understand,” adding:
What I think is that exchanges are to function to meet the needs of investors and market participants, broadly…to help them keep trading and making transactions. Any forceful ban against them would hurt the nature of the market.
Yoon also pointed out that “Regulation is good. However, it would be more than just good when it is used to help new businesses grow. Imposing taxes on crypto exchanges and investors needs to be considered, if necessary.”
An official of the largest cryptocurrency exchange in South Korea, Upbit, commented on Yoon’s new role, stating that “What the new FSS chief should think about is how the regulators should provide remedies to help crypto trading and blockchain technology get better.”
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