New South Korean Regulator Chief Calls to Not Delay Discussions on Cryptos

Koh Seung-beom, the new Financial Service Commission (FSC) Chairman, stated on Tuesday that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term are not an issue that should not be delayed whatsoever and need to be addressed by the South Korean bureau soon. According to The Korea Times, Koh reiterates its stance to rationalize the crypto market in South Korea – something aligned with the government’s plans.

“This is not an issue that can be avoided or delayed. It’s quite necessary to minimize the estimated impact on the market players invested in cryptocurrencies. FSC will try to share any updates on the matter with the market,” FSC Chairman commented on the matter. Koh is a former member of the Bank of Korea’s monetary policy board and was confirmed in a hearing last week held in the National Assembly.

His words arrive in a moment where the cryptocurrencies are perceived by some high-ranked politicians and agencies as a 'bubble', implying a regulatory issue for the country. But, both South Korea’s central bank and the FSC do not see virtual currencies as financial assets from a legal point of view. Still, the FSC chairman’s priorities are pointing towards other fronts: “FSC’s policy focus is how to stabilize the financial market and how to ensure that soaring total household debt does not hurt the economy in terms of its stability.”

Upcoming Crypto-Focused Bureau

On the regulatory turmoil in South Korea, the financial watchdog recently announced that it would set up an independent bureau that seeks to address all crypto-related matters in the country. That said, the Korea Financial Intelligence Unit (KFIU) will have the legal power to handle the brand-new agency.

As reported by Finance Magnates, the crypto regulatory tussle has been a hot potato for the national government over the last months ahead of the deadline to enact the new set of rulings on crypto exchanges and banks that deal with such companies on September 24.