South Korean Regulator ‘Cautious’ About Letting Corporations Invest in Crypto
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.
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.
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
Kim questioned whether “allowing corporations and institutions” access to crypto markets was “really appropriate.”
And Kim added that “virtual assets do not correspond” to
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