Seung-beom Koh, a nominee for chairman of Due south Korea's Financial Service Committee (FSC), does not regard cryptocurrencies as a financial asset.

In a press meeting with local journalists, Koh said that fintech experts from prominent organizations such as the G20, the International Monetary Fund and others "notice it hard to see virtual currencies as a financial nugget, and recall they could non function as a currency."

Koh'south comments coincide with the ongoing surge in crypto trading amid young investors who primarily invest for short-term profits, co-ordinate to The Korean Times. Investors as well meet cryptocurrencies as a fair take chances to buy homes past countering skyrocketing property prices.

Koh likewise pointed out that excessive household credit could negatively affect South korea'due south economic system. As of March 2022, the country'south household credit witnessed a ix.five% hike to reach 1,765 trillion Korean won, approximately $i.52 trillion. As a means to curb the increasing household debt, Koh said:

"The FSC volition push button ahead with existing anti-debt measures and come with additional steps, if needed, by mobilizing all available policy means."

Related: Due south Korean FSC denies plans to shut down 11 crypto exchanges

South Korean government were reportedly planning to shut down numerous crypto exchanges under the suspicion of operating fraudulent collective accounts and borrowed-proper noun accounts.

Nonetheless, on Aug. ix, the FCS reached out to Cointelegraph to deny such claims of suspending crypto exchanges. A representative stated that the 11 exchanges in question "are required to open upwards and use real-name accounts for the purpose of collecting deposits."

Just last month, Southward Korean authorities warned crypto exchanges to voluntarily register with local authorities by Sept. 24 or run a risk facing jail time or hefty fines.