Yoon Suk-heun, the new Korean Financial Supervisory Service (FSS) governor expressed he will ease regulatory actions on cryptocurrency, reported The Korea Times on May 6.
“The FSS will collaborate with the 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,” Yoon said.
“Regarding cryptocurrencies, there are some positive aspects,” he added.
Yoon strongly believes that relaxing cryptocurrency regulations will help the market to be more stable and help it improve and grow.
“We don’t oppose regulations. But you can’t entirely kill the markets by simply imposing regulations. What the new FSS chief should think about is how the regulators should provide remedies to help crypto trading and blockchain technology get better,” an Upbit official mentioned.
Since the regulators were allowed to check the transaction history of cryptocurrency investors and the deposits and withdrawals were only permitted between real-name bank accounts and matching crypto-exchange accounts at the same bank, the crypto market was frozen.
“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 said.