South Korea Is Reconsidering Its Crypto Regulations

South Korea's FSS (Financial Supervisory Service) has a new chief starting Tuesday, May 8. As a known reformist and activist, he announced a possible reconsideration of the country's cryptocurrency regulations.

South Korea’s FSS got a new man in charge

Starting today, the FSS (Financial Supervisory Service) of South Korea will have a new man in charge. Moon Jae-in, the country’s President, decided to approve Yoon Suk-heun, who was one of the nominees for the position of leader of FSS. The new development came after the previous head of this cryptoregulations overlooking agency, Kim Ki-sik, decided to step down.

The agency itself falls under FSC (Financial Services Commission), which is the very government entity that originally submitted Yoon’s nomination for approval. According to the Korea Times’ report, Tuesday, May 8, will mark Yoon’s official start as the head of the FSS.

In their report, they also mentioned that the new governor plans to reconsider the country’s current regulations and that this reconsideration will be in cryptocurrency’s favor.

Yoon has hinted previously that the regulations might be in need of an adjustment so that the country would fit better into the crypto market. Korea Times’ report also said that Yoon has a reputation of being a reformist, and even an activist.

Yoon has a different view on cryptos

Yoon has some refreshing new views when it comes to this country’s relationship with cryptocurrencies. He stated in front of the reporters that there are several positive aspects to this trend, but also many issues that need addressing.

He has also announced that the FSS and FSC will work together in an attempt to figure cryptocurrencies out. The collaboration between the two will work by dividing tasks that each organization has to achieve. For that purpose, the FSC will be in charge of inspecting various policies, and the FSS will be in charge of examining and supervising different financial institutions. However, this task of the FSS will also be supervised by FSC.

Yoon has stated earlier this year that he understands the issues that the Korean government has when it comes to cryptos. They are known for their volatility, after all, which forces the government to remain cautious and avoid risks. However, he strongly disagrees with the fact that the government refuses to recognize cryptos as neither currencies nor as financial assets.

As part of this statement, Yoon said that he believes the exchanges need to meet investors’ and market participants needs. They need to assist in their trades and transactions as introducing bans will only lead to damaging the already fragile market. This doesn’t mean that introducing new regulations is a bad thing. They are needed, and he acknowledges that. However, designing them to help businesses would make them much more than just good. He also believes that there might be a necessity for taxes to be imposed on exchanges, as well as investors.

Upbit, the largest crypto exchange in South Korea, has issued a comment on the new development as well. One of their officials stated that Yoon should think of ways of regulating to help and improve crypto trading. He now has an opportunity to make both cryptos, as well as blockchains, better and more efficient.

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