Breaking News

New FFS Governor willing to ease Cryptocurrency regulations in South Korea
Editorial Team

The new head of Korea’s primary financial regulator has confirmed that the authority will try to relax regulations on domestic cryptocurrency trading.

After the approval by President Moon Jae-in to lead the Financial Supervisory Service (FSS), the new governor Yoon Suk-heun, speaking to reporters on Sunday, said that the authority will search ways to revising some regulations applied to the crypto market, according to The Korea News.

The governor Yoon is a visiting professor at Seoul National University and he is seen as a “reform-minded” activist with experience as a bureaucrat in the country.

He told reporters:

“Regarding cryptocurrencies, there are some positive aspects…The FSS will collaborate with the FSC when an inspection of 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.”

In September, the reports wrote that the FFS notably issued the ban order to completely ban initial coin offerings in South Korea. In January, the FSC implemented a ban on all anonymous cryptocurrency trading by mandating the use of real-name trading accounts.

The second development has dented the market instead of acting as a measure that would stop anonymous trading and be encouraging KYC-enabled practices in the industry.

“Markets expected the introduction of the real-name registration system would have been helpful to revive trading, but these efforts failed as local banks were reluctant to invite more crypto traders,” a Bithumb official told the Korea Times.

Yoon denied explaining on the possible regulatory changes the FSS would consider for cryptocurrency exchanges to the reporters saying:

“There are a lot of issues that need to be addressed and reviewed. We can figure them out but gradually.”

The change of the authority’s stance comes at a time when a politician from Korea’s ruling party leading a group of lawmakers is working on a bill to legalize ICOs in South Korea after the previous banning.

Governor Yoon Suk-heun will begin his tenure at the job on May 8. The ICOs and cryptocurrency topic will be discussed again during a press conference facing local and international media the same day.