The Financial Supervisory Service of South Korea is getting a new governor. Yoon Suk-heun received nomination from the Financial Services Commission. In collaboration with each other, these governing bodies oversee financial institutions and policies in the country. Yoon, as chief of the FSS, holds a lot of power in the South Korea’s financial industry. His recent comments point toward the country easing regulations on cryptocurrencies.
In recent months, South Korea has taken numerous measures to regulate cryptocurrencies. The country sought to decrease rampant speculation among these currencies as well. Regulation efforts included a strict ban on unverified, anonymous exchange accounts. Also, underaged and foreign investors alike were barred from utilizing the country’s exchanges. South Korea even banned Initial Coin Offerings (ICOs) within its borders.
South Korea’s cryptocurrency markets took a thrashing from these regulations. Daily trading transactions dropped to a tenth of their normal levels. Plus, the cryptocurrency markets as a whole took a steep dive as these regulations were implemented. Officials turned South Korea into a heavily regulated country instead of a cryptocurrency pioneer. Most people assumed the damage would be undone in the near future, though.
Yoon recently spoke about South Korea’s relationship with cryptocurrencies. At one point, he stated the country will consider easing some of its regulations. Lawmakers in South Korea continue to work on a plan to reinstate ICOs in the country. A number of other changes could be made to improve the industry within South Korea’s borders. For now, many people agree that some form of regulation is necessary, but they disagree on how much.
It remains to be seen what comes from Yoon’s comments. The FSC and FSS will need to work closely in order to make progress on the issue. Without a doubt, South Korea will ease its cryptocurrency regulations within the coming years. Just how much changes in the country won’t be known until those measures are implemented, though. South Korea remains a popular hub for cryptocurrency transactions and innovations nonetheless.
Billions of dollars in cryptocurrency transactions still occur in South Korea each month. For the time being, cryptocurrencies remain in a limbo where everyone is waiting for the next bull market. Or they’re waiting for new innovations within individual cryptocurrencies, which could also lead to rallies. Each country continues to work toward regulating cryptocurrencies and deciding how to treat these currencies from a legal standpoint. Until these details are figured out, cryptocurrencies may remain bearish.
Dil Bole Oberoi
