Leading Financial Regulator Candidate Rejects Cryptocurrency As Financial Asset

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Leading Financial Regulator Candidate Rejects Cryptocurrency As Financial Asset

In this August 6 file photo, Koh Seung-beom, the Financial Services Commission (FSC) candidate, addresses reporters as he arrives at his temporary office in Seoul.  Yonhap
In this August 6 file photo, Koh Seung-beom, the Financial Services Commission (FSC) candidate, addresses reporters as he arrives at his temporary office in Seoul. Yonhap


The South Korean financial regulator candidate said on Wednesday that it might be difficult to recognize cryptocurrency as a financial asset in light of international trends.

“I understand that the Group of 20, the International Monetary Fund, other international agencies and a considerable number of experts find it difficult to see virtual currencies as a financial asset, and believe that they could not function as a financial asset. currency, ”Koh Seung-beom said. , the candidate for the Financial Services Commission (FSC), said during a meeting with reporters.

His comment came as South Korean investors massively bought virtual currency, viewing it as a lucrative asset amid the coronavirus pandemic.

More and more young people have invested in cryptocurrencies, anticipating higher returns, with some claiming that they cannot buy houses solely with their income as house prices skyrocket.

Koh reiterated his previous commitment to ensuring that financial authorities give top priority to limiting a sustained increase in household debt, which some experts say is a time bomb for Asia’s fourth-largest economy. .

“The FSC will continue existing anti-debt measures and propose additional measures, if necessary, mobilizing all available political means,” he said.

An excessive increase in household credit could lead to the creation and collapse of a bubble, which could undermine the strength of the country’s financial industry and have a negative impact on the real economy, he said. he adds.

Credit to South Korean households hit an all-time high of 1,765 trillion won ($ 1,520 billion) in late March, up 9.5 percent from a year earlier, according to bank data central.

In April this year, the FSC announced a series of measures to slow the growth of household debt by extending stricter rules to more mortgage borrowers. (Yonhap)


















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