FSC Nominee Signals Tough Crypto Regulation Backs Stablecoins
Lee Eok-won, nominee for South Korea’s Financial Services Commission (FSC) chair, criticised cryptocurrencies as lacking intrinsic value and failing basic monetary functions due to extreme volatility. He rejected pension funds’ crypto investments amid discussions on crypto regulation and said he would review global trends before approving spot Bitcoin ETFs. Conversely, he endorsed tough crypto regulation for won-pegged stablecoins under President Yoon’s digital asset framework. Industry experts slammed his conservative stance, arguing it undervalues blockchain utility and risks sidelining Korea’s Web3 ambitions. Some urged an independent digital assets regulator to balance market stability with innovation and investor protection.
Bearish
Lee Eok-won’s cautious approach to cryptocurrency—rejecting pension fund investments and delaying spot Bitcoin ETF approvals—signals tighter crypto regulation in South Korea. This restriction may reduce institutional demand and hinder market liquidity in the short term, exerting downward pressure on crypto prices. Although his support for won-pegged stablecoins could bolster local stablecoin adoption, the overall conservative stance and potential for stricter rules weigh on investor sentiment. In the long term, ambiguous regulation may slow market growth and delay innovations, keeping the market under bearish pressure until clearer, balanced policies emerge.