South Korea: candidate for president of the FSC considers that cryptocurrencies have no value

The one nominated to lead the Financial Regulator of South Korea questions the value of cryptocurrencies, but supports Stablecoins’s plans.

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• Lee Eok-Won, nominated to preside over the Financial Services Commission, He made worrying statements about crypto.
• He claimed that cryptocurrencies have no intrinsic value.
• The official has its reservations on allowing pension funds to invest in cryptoactive.
• Although critic with cryptocurrencies, he expressed his willingness to regulate a local Stablcoins market.

The nominated candidate to preside over the Financial Services Commission (FSC) From South Korea, Lee Eok-Won generated controversy by declaring that cryptocurrencies lack intrinsic value, unlike traditional financial products such as deposits or shares.

The comments of the nominee to direct the Securities Agency arose in written responses prior to its confirmation hearing, according to the local agency News1, cited by means The Block.

Lee said that, Due to its high volatility, cryptocurrencies cannot fulfill essential functions of a currency, such as serving as a reserve of value or means of exchange. These statements come in a context in which multiple countries and companies incorporate digital assets in their financial strategies.

The official also expressed skepticism regarding allowing pension and retirement funds to invest in cryptocurrencies. He pointed out that The speculative nature of the market and its price fluctuations represent a considerable risk for the long -term savings of citizens.

Criticism of the crypto industry

The statements of the candidate to lead the FSC They aroused criticism in the local industry. Some actors considered their comments as a setback, especially at a time when global governments and corporations integrate cryptocurrencies into their balances. Space figures Blockchain at the local level they defended that Bitcoin and other digital assets do have practical value, derived from their safety and transferability in decentralized networks.

The discussion reflects a clash of visions: while part of the ecosystem promotes the adoption and usefulness of cryptoactive, regulatory sectors in South Korea maintain a cautious posture in the face of their integration into the formal economy.

Cryptocurrency ETFs and regulatory plans

Another point addressed by Lee was the future of the funds quoted in the Bag (ETF) of cryptocurrencies. The FSC He has studied allowing local signatures to launch spot funds based on digital assets. He admitted that there are concerns about these instruments, although he claimed to be willing to work with legislators to advance in the matter.

This nuance indicates that, despite its skepticism towards cryptocurrencies as such, the candidate does not rule out developing regulatory frameworks that allow greater financial innovation, provided that security for investors is guaranteed.

A commitment to the stablecoins

In contrast to his critical vision of cryptocurrencies, Lee expressed support for South Korea’s plans to regulate a local Stablcoins market linked to the national currency. He declared that he will seek to balance innovation opportunities with adequate security measures.

The impulse towards the Stablecoins has the support of President Lee Jae Myung and is part of a global trend: regions such as Japan, Hong Kong and China also advance in stable digital currencies projects to protect their monetary sovereignty in the Web3 era.

Lee’s position suggests that South Korea could adopt a dual strategy: keep reservations about assets such as Bitcoin and Ethereum, while driving a solid frame for national stablcoins. If confirmed, politics would place the country in line with the efforts of other Asian powers for strengthening its financial position in the new digital ecosystem.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of UNSPLASH.

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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