Seung-beom Koh, a candidate for the post of chairman of the South Korean Financial Services Commission (FSC), does not view cryptocurrencies as a financial asset.
In a press meeting along with local reporters, Koh said fintech experts from leading organizations such as the G20, the International Monetary Fund and others “find it difficult to see virtual currencies as a financial asset and believe they are could not function as a currency “.
Koh’s comments coincide with the continued increase in crypto trading among young investors who invest primarily for short-term profits, according to the Korean Times. Investors also view cryptocurrencies as a fair chance to buy homes by thwarting soaring house prices.
Koh also pointed out that excessive household credit could have a negative impact on the South Korean economy. In March 2021, the country’s household credit increased 9.5% to 1.765 billion Korean won, or about 1.52 trillion dollars. In order to reduce growing household debt, Koh said:
“The FSC will continue existing anti-debt measures and propose additional measures, if necessary, mobilizing all available political means. “
Related: South Korean FSC denies plans to shut down 11 crypto exchanges
South Korean authorities have been would have intends to shut down numerous crypto exchanges suspected of exploiting fraudulent collective accounts and borrowing accounts.
However, on August 9, the FCS contacted Cointelegraph to deny the claims of crypto trading suspension. A representative said the 11 exchanges in question “are required to open and use real name accounts for the purpose of collecting deposits.”
Just last month, South Korean officials warned crypto exchanges to voluntarily register with local authorities by September 24, or face prison terms or heavy fines.