Lee Eok-won, the nominee for chairman of South Korea’s Financial Services Commission (FSC), has made critical remarks about cryptocurrency, stating that it has extreme price volatility, lacks monetary function, and possesses no intrinsic value. He argues that virtual assets differ from traditional financial products, highlighting the challenges cryptocurrencies face as stores of value or mediums of exchange. Lee also voiced opposition to pension fund investments in cryptocurrencies, emphasizing widespread concerns about their speculative nature. While he plans to review global regulatory trends regarding cryptocurrency exchange-traded funds (ETFs), he aims to foster innovation in stablecoins with adequate safeguards. This follows a report on President Lee Jae-myung’s campaign to back stablecoins and recent changes allowing crypto companies to be classified as venture businesses in South Korea. Amidst increasing engagement in cryptocurrency among South Korean youth, concerns about speculative investments motivated by quick financial gains have been raised.

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