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Financial Services Commission Chairman nominee Koh Seung-beom reiterated the government’s refusal to acknowledge cryptocurrency as a viable asset class.
In an answer to the National Assembly‘s National Policy Committee ahead of his confirmation hearing, Koh noted that international organizations, including the International Monetary Fund and Group of 20, as well market experts, do not consider virtual currencies as a financial asset, and are capable of functioning as a real currency,
The FSC’s incumbent chief Eun Sung-soo believes cryptocurrencies have no intrinsic value are not a real currency.
Coin trading gained momentum with the price of a bitcoin in Sout Korea topping 80 million won for the first time in mid-April.
Under South Korea's revised Act on Reporting and Using Specified Financial Transaction Information, virtual asset service providers may begin operations after reporting their business status to the anti-money laundering unit under the FSC, the Financial Intelligence Unit, which requires the acquisition of verifiable accounts in their real names from local banks, while taking anti-money laundering measures.
There were 21 local crypto operators, including the four biggest exchanges of Bithumb, Upbit, Coinone, and Korbit, that had registered with the FIU as of the end of July.
