South Korea FSC Chief Nominee Faces Backlash After Calling Crypto Valueless
Lee Eok-won, South Korea’s FSC nominee, defends his view that crypto lacks intrinsic value, while critics cite blockchain revenues and adoption as evidence of utility amid rising retail investor interest.
Lee Eok-won, nominated to lead South Korea’s Financial Services Commission, reaffirmed his stance that cryptocurrencies lack intrinsic value, sparking criticism from the crypto community. In written responses before his confirmation hearing, Lee said crypto volatility prevents it from functioning as money, and warned against pension funds investing in digital assets. He noted regulators will review global developments before deciding on a spot Bitcoin ETF, but supported stablecoin regulation under President Lee Jae-myung’s administration. Industry leaders criticized his remarks as outdated, pointing to blockchain project revenues and adoption. Meanwhile, South Korea’s government has reinforced restrictions on financial institutions’ exposure to crypto assets, even as retail investors pivot away from U.S. tech stocks toward volatile crypto proxies.
- Cryptocurrency: A digital asset that uses cryptography and typically operates on decentralized blockchain networks.
- Stablecoin: A type of cryptocurrency designed to maintain a stable value, often pegged to a currency like the U.S. dollar.
- Bitcoin ETF: An exchange-traded fund that tracks the price of Bitcoin, offering indirect exposure to the asset in regulated markets.