FSC Chairman Says Korean Government to Protect Investors on Registered Crypto Exchanges

Korean Financial Services Commission (FSC) Chairman, Eun Sung-soo said only cryptocurrency exchanges that have opened real-name bank accounts will be allowed to file for regulatory approval under the amended Act on Reporting and Using Specified Financial Transaction Information.

The Korean Herald reports today that Sung-soo disclosed that investors’ assets on registered cryptocurrency exchanges will be protected from fraudulent actors, while adding that the government will monitor funds’ withdrawal going forward.

South Korea had earlier amended its Act on Reporting and Using Specified Financial Transaction Information,” also referred to as the Financial Transaction Reports Act (FTRA).

The amended regulation, which took effect on March 25, 2021, mandates all virtual asset service providers (VASPs) to register with the financial watchdog and also comply with established anti-money laundering (AML) guidelines.

FSC Chairman Receives Backlash For Hostile Crypto Comments

Sung-soo has not entirely been in the good books of crypto investors due to his hostile comments about the assets and related businesses.

Last month, Sung-soo said at a National Assembly meeting that cryptocurrency exchanges are required to register with the authorities on or before September 25, 2021, or risk being shut down.

Later that same day, the finance chief said young people who are investing in cryptocurrencies are on the wrong part, adding that they need to retrace their steps or suffer major losses in the future.

The statements did not go down well with several investors as they vented their anger at the FSC chairman across various social media platforms, with many calling for his resignation via an online petition that has received over 200,000 signatures so far.

Sung-soo felt his comments in the past were misunderstood and as such, he needed to clear the air with today’s interview.

South Korean Regulators Not Concerned About Crypto Volatility

While Sung-soo made efforts to correct the misconception about his previous comments, he reiterated that the Korean government can only protect investors from scammers but not the increased volatility associated with the investments.

“What I want to make clear is that cryptocurrency volatility is not a subject of our protection,” he added.

More Koreans Interested in Cryptocurrencies

Despite the assets’ volatility and the government’s plan to levy a 20% tax on crypto profits from next year, Koreans, including traditional retail investors, are still buying cryptocurrencies with gains made from traditional investments like gold and stocks.

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