The likely new head of the top South Korean financial regulator says he is “cautious” about letting corporations invest in crypto.
Per Digital Times, the comments came from the nominee for the chairmanship of the Financial Services Commission (FSC) Kim Byung-hwan.
Kim spoke at a confirmation hearing at the National Assembly’s Political Affairs Committee on July 22.
Will Korean Regulators OK Corporate Crypto Investment?
The nominee is expected to take over from FSC Chairman Lee Bok-hyun later this summer.
Kim was speaking in response to a question from a Democratic Party lawmaker who asked whether South Korea needed to address the issue of corporate “involvement” in crypto.
Kim Byung-hwan, the nominee for the chairmanship of the Financial Services Commission (FSC), speaking at the National Assembly in Seoul, South Korea. (Source: Jeonju MBC News/YouTube)Politicians have been keen to push the FSC and other regulatory bodies to follow suit with Washington and approve spot Bitcoin ETFs.
However, regulators appear not to share lawmakers’ enthusiasm about spot BTC ETFs. They have urged Seoul to wait and see how the United States move pans out before rushing into action.
The DP lawmaker asked about Kim’s stance on corporate crypto investment. Kim replied:
“I am cautious about the issue of approving the launch of [crypto] accounts for corporations and institutions. Considering the confusion we have seen in the [crypto] market in the past, current policies should focus on investor protection [rather than market development].”
South Korea’s first law specifically designed to protect cryptocurrency investors took effect on Friday, bringing the virtual asset industry within legal boundaries. (Korea Herald) https://t.co/sdC3twYNWP
— Financial Services Commission – FSC Korea (@FSC_Korea) July 19, 2024
FSC Chairman Nominee: More Discussion Needed on Crypto Regulation
Kim questioned whether “allowing corporations and institutions” access to crypto markets was “really appropriate.”
And Kim added that “virtual assets do not correspond” to conventional “financial products.”
The nominee further poured scorn on the idea that crypto could ever take the place of fiat. He said:
“It would be difficult for virtual assets issued by the private sector to completely replace the role of legal tender, as issued by the central bank. It is difficult to view virtual assets as a form of currency.”
Kim was cagey on the subject of spot Bitcoin ETF approval, too. He explained to the committee:
“We need to consider the importance of stabilizing the financial market and the impact [approval might have] on financial institutions.”
Lawmakers continued to press him on his crypto regulation views. Kim answered that he agreed that “additional discussions” were “necessary regarding regulations on virtual assets.”
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