While the entire world has started to view crypto as a promising industry, the nominee for the Korean Financial Service Commission [FSC], Seung-beom Koh, believed otherwise.
Cryptocurrencies caught the eye of many this year. The industry was seen trying to successfully cut off ties with the dark web as it garnered recognition in the real financial world. With people pouring into the industry, the government began laying its focus on the crypto market while trying to regulate it. Some governments were glad to welcome digital assets into the monetary sphere, however, a few others continued to express distress over these assets.
Seung-beom Koh, the potential chair of the Korean FSC, suggested that it would be challenging to recognize crypto as a financial asset.
Crypto fails to meet the standards of a financial asset?
Addressing a recent press meet, the FSC chair nominee pointed out that officials from organizations like the International Monetary Fund [IMF], G20, and a few others wouldn’t categorize crypto as a financial asset. Koh stated,
“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 think they could not function as a currency.”
The interest in digital assets has surged in almost every region. In Korea, young people have reportedly been pouring funds into the market with hopes of achieving high returns. This is in light of the increasing household credit which has been showing the Korean economy in a bad reflection.
Koh with his potential take-over as the FSC chair hopes to diminish this surge in household debt. Speaking about the same Koh added,
“The FSC will push ahead with existing anti-debt measures and come up with additional steps, if needed, by mobilizing all available policy means.”