Lee Eok-won, South Korea’s FSC nominee, called cryptocurrency “highly volatile” and “without intrinsic value,” signalling a cautious regulatory stance on ETFs and pension investments while allowing controlled innovation for stablecoins under stringent safeguards.
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FSC nominee: crypto has extreme price volatility and no intrinsic monetary function.
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Lee will review global ETF trends and consult lawmakers before deciding on implementation.
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Stablecoins may be permitted with regulatory safeguards; pension investments are discouraged due to risk.
Meta description: Lee Eok-won crypto remarks: FSC nominee warns of volatility and lack of intrinsic value; cautious ETF and pension stance, stablecoin innovation with safeguards. Read more.
Lee Eok-won, South Korea’s Financial Services Commission chief nominee, described cryptocurrency as highly volatile and lacking intrinsic value, arguing it differs from deposits and securities in monetary function and stability.
Lee Eok-won, the nominee for chairman of South Korea’s Financial Services Commission (FSC), has publicly criticised cryptocurrency ahead of his confirmation hearing.
In written answers submitted to lawmakers, Lee stated that “crypto has extreme price volatility, lacks monetary function” and that virtual assets “have no intrinsic value,” distinguishing them from traditional financial products such as deposits and securities.
Lee explained that the volatility of cryptocurrencies undermines their suitability as a store of value or medium of exchange. His remarks drew responses from South Korea’s crypto sector, which pointed to corporate treasury holdings and blockchain utility as counterarguments.
South Korea’s Financial Services Commission. Source: Wikimedia
Related: Binance and Tether are watching Korea closely: Here’s why
What did Lee Eok-won say about cryptocurrency?
Lee Eok-won crypto remarks assert that cryptocurrencies exhibit extreme price volatility and lack intrinsic monetary function, making them unsuitable as deposits or securities analogues. He emphasised that these characteristics complicate their use as pension or retirement investments.
How will the FSC approach crypto investments by pension funds?
Lee advised against allowing pension funds to invest in virtual assets, citing the “high volatility and speculative nature” that threaten the stability of retirement incomes. He emphasized a protective stance for public policy designed to preserve long-term savings.
What is the FSC nominee’s stance on crypto ETFs?
Lee said the regulatory body will “review global regulatory trends” on exchange-traded funds (ETFs) and decide on timelines and implementation in consultation with lawmakers. He framed ETFs as an area with both legitimate market expectations and systemic risk concerns.
Future FSC’s chief crypto regulatory outlook
Lee signalled a measured approach: caution on pension exposure, deliberation on ETFs, and conditional support for stablecoin innovation. The nominee highlighted the need to balance financial stability with technological development.
Will stablecoins be allowed?
Lee indicated that the FSC would seek to create opportunities for stablecoin innovation while imposing safeguards to mitigate systemic risks. This aligns with reports that major banks in South Korea are exploring a won-backed stablecoin initiative as part of broader policy discussions.
South Korean youth and crypto adoption: why it matters
Data cited in late March show crypto exchange users in South Korea exceeded 16 million — over 30% of the population. Experts at recent industry events suggested adoption is driven by financial pressure among younger cohorts seeking higher returns, rather than solely ideological support for Web3.
An anonymous South Korean crypto company official noted that calling crypto valueless overlooks corporate treasury strategies and Bitcoin’s digital utility tied to blockchain security and transferability.
Comparative summary of FSC nominee positions
| Area | Lee’s Position | Implication |
|---|---|---|
| Crypto as asset | Highly volatile; no intrinsic value | Restrictive classification; cautious supervision |
| Pension funds | Discouraged | Limits on retirement exposure |
| ETFs | Under review | Policy decision after global trend analysis |
| Stablecoins | Permitted with safeguards | Potential for bank-backed won stablecoin |
Frequently Asked Questions
Does Lee Eok-won believe cryptocurrencies have intrinsic value?
Lee stated that virtual assets “have no intrinsic value” and differ from deposits and securities, arguing that their volatility undermines monetary function and the case for intrinsic worth.
Will South Korean pension funds be allowed to invest in crypto?
Lee recommended against using pension or retirement funds for virtual asset investments due to substantial volatility and the need to protect long-term income security.
How will the FSC decide on crypto ETFs?
The FSC will review international regulatory models, weigh market expectations against stability concerns, and consult lawmakers before setting implementation timelines for ETFs.
Key Takeaways
- Nominee’s view: Lee Eok-won considers crypto highly volatile and lacking intrinsic value.
- Policy direction: Pension investments discouraged; ETFs under formal review; stablecoins allowed with safeguards.
- Market impact: Statements sparked industry pushback and highlight regulatory scrutiny as adoption grows.
Conclusion
Lee Eok-won’s comments mark a cautious regulatory pivot: prioritising financial stability while allowing controlled innovation for stablecoins. As South Korea balances rapid crypto adoption with systemic risk concerns, the FSC’s forthcoming policy decisions will shape market access and investor protection. COINOTAG will monitor developments and report updates.
