Koh Seung-beom, a candidate for FSC (Financial Services Commission) chair, expressed that the crypto assets would not work successfully in the form of financial instruments. He went on to further state that they could not even operate as physical currency.
Digital assets: real money?
Koh Seung-beom, nominated for the FSC’s next chairman by the Korean president, voiced his scepticism about the successful character of crypto throughout the economic system. He acknowledged the opinion of the IMF (international monetary fund) that crypto assets are not yet prepared to be used as national currencies. International organizations such as IMF, the G20 (Group of twenty, and many other experts of the market think that it is very difficult for digital assets to be recognized as financial assets.
Although Bitcoin, as well as altcoins, were described as volatile by IMF, it admitted some benefits of them as well. Diversification can be incorporated in the portfolios of the investors along with some profit. The financial company highlighted that digital currencies could be better adopted by the countries that are facing inflation as well as shattered economy. El Salvador can be considered a proper example in this respect. It was reported recently in June that the country had adopted Bitcoin as a primary currency to be utilized as the official method of payment within the country’s demarcation.
The stance of Koh Seung-beom somehow coincides with the statement of FSC’s incumbent chief named Eun Sung-soo as the cryptocurrencies (having no value of their own) cannot be related to that of real currencies.
South Korea’s crypto environment
Previously in June, the South Korean government considered introducing the latest rules regarding local exchanges of cryptocurrency. There would be a need for trading venues to own accounts with real names at their local banks by September. Such unfavourable regulations are not welcomed by a lot of small platforms of digital assets. They believe that they have formerly been discriminated against. In this respect, some of the representatives from such firms even expressed their intentions to legally sue the authorities of Korea. During these days, the banks are denying to commence with the processes of verification regarding the crypto trade without giving proper reasons.
The majority of the exchanges are not being provided with an opportunity to prove their capabilities. Nonetheless, FSC is continuously hunting down the trading venues that do not have compulsory licensing.