South Korea Plans To Ease Crypto Regulations Under New FSS Governor

ICO News, News, Regulation | May 7, 2018 By:

Yoon Suk-heun, the newly appointed governor of South Korea’s Financial Supervisory Service (FSS), said that the country’s top financial regulator will look to ease regulations on domestic cryptocurrency trading.

In a statement, Yoon said the FSS will collaborate with the Financial Services Commission (FSC) when an inspection on policies and financial institutions has different configurations associated with different scopes. FSC inspects policies, while the FSS examines and supervises financial institutions, but with the oversight of the FSC, he added.

In September 2017, the FSS banned initial coin offerings (ICO) in the country. In January, the FSC enforced a ban on all anonymous crypto trading by mandating the use of real-name trading accounts. The decision to enact the new measures was made as part of an effort to curb illegal activities associated with cryptocurrency, including money-laundering and tax evasion.

The newly appointed FSS governor, however, seemed to be responsive and inclined to pursue policies according to market rules not based on heavy intervention, raising expectations that the government will ease restrictions on ICOs and other types of crypto trading.

While Yoon did not comment on the methodologies that would be adopted by the regulator for local crypto exchanges, he said better regulation “would produce” a more stable financial system where related services and products would be more likely to make them serviceable, and that would further improve the system.

During an industry event on January 31, Yoon said that any forceful ban against cryptocurrencies would hurt the nature of the market.

“Given the high volatility in cryptocurrencies, the government stance is understandable,” Yoon said. “However, the country’s position on cryptocurrencies, which it said are not financial assets, is hard to understand. Regulation is good. However, it would be more than just good when it is used to help new businesses grow. Imposing taxes on crypto exchanges and investors needs to be considered, if necessary.”