Korea FSC Chairman nominee: Crypto Assets lack Intrinsic Value and cannot fulfill the basic functions of currency.

The Chairman nominee of the Financial Services Commission of Korea, Lee Eok-won, recently stated that cryptocurrencies lack intrinsic value and are fundamentally different from traditional financial products such as deposits and stocks, which has sparked a rebound in the industry. At the same time, the Financial Supervisory Commission of Taiwan has also repeatedly emphasized the high risks of virtual assets, including lack of intrinsic value and high fluctuation, urging investors to assess cautiously. The regulatory attitudes of both countries reflect a common concern about the speculative nature of the crypto market.

Korea FSC Chairman nominee: Cryptocurrency cannot fulfill the basic functions of money.

In a written response submitted before the hearing, Lee Yi-Won pointed out that the prices of crypto assets are highly volatile and cannot fulfill the basic functions of currency, such as value storage or medium of exchange. He expressed skepticism about allowing pension and retirement funds to invest in crypto assets due to the speculative nature and instability of the market. However, Lee Yi-Won still stated that the FSC will work with legislators to advance local crypto asset ETFs in South Korea. This statement has sparked a strong rebound from individuals in the South Korean crypto industry, who criticized this viewpoint as outdated.

Both the Taiwan and South Korea financial regulatory authorities have warned that cryptocurrencies have high speculative nature and lack intrinsic value.

In contrast, the Financial Supervisory Commission of Taiwan issued a risk reminder in an announcement on March 20, 2024, regarding the severe fluctuations in the prices of virtual assets such as Bitcoin, which have led to significant losses for investors. The Commission listed several warnings, including that virtual assets “are not currency, have no intrinsic value, carry high trading risks, have no price fluctuation limits, and are prone to extreme rises and falls,” and regards them as highly speculative digital “virtual goods.”

( Financial Supervisory Commission: Bitcoin and other assets have severe fluctuations and no intrinsic value, and should be used cautiously on overseas platforms )

The warnings from the regulatory agencies of both countries regarding the lack of intrinsic value of cryptocurrencies are similar in nature, mainly focusing on their high fluctuations and speculative nature, which prevents them from operating as stably as traditional currencies. South Korea’s position may be influenced by the large domestic holdings of cryptocurrencies, leading to a greater need to balance innovation with risk; Taiwan emphasizes consumer protection, preventing money laundering and fraud risks through a strict anti-money laundering framework.

Li Yiyuan: Will seek a balance between innovative opportunities and appropriate security measures in the stablecoin space.

However, Lee Billion has a different attitude towards stablecoins compared to general crypto assets. He stated that he would seek a balance between innovation opportunities and appropriate security measures, supporting the advancement of a Korean won-backed stablecoin. This move aligns with President Lee Jae-myung’s policy, as South Korea is expected to introduce relevant legislation in October to gradually implement stablecoins to protect monetary sovereignty and reduce dependence on dollar-backed stablecoins.

This article discusses the nominee for the chairman of the Korean FSC: Crypto Assets lack intrinsic value and cannot fulfill the basic functions of currency. It first appeared in Chain News ABMedia.