South Korea’s Financial Services Commission (FSC) has cast doubt on the country’s president’s statement about the imminent “institutionalization of digital currencies.”
Park Joo-young, Head of the FSC Financial Innovation Department, expressed concern about the ambitious plans of the head of state to introduce cryptocurrencies into corporate business:
“There may be a sense of urgency due to gaps in regulation, but it is important to create a regulatory framework that is in line with the international level.”
The regulator’s representative added that “until there is international agreement, it will be difficult to create a regulatory system alone,” so the commission is now actively studying foreign practices for the supervision of cryptocurrencies. Park added that it is difficult to create a common legislative framework, since the bill has not even been finalized yet. Plus, 14 more bills related to cryptocurrencies are still pending in the National Assembly of South Korea.
“The European MiCA (Crypto Asset Market Regulations) is not yet finalized and it is expected that it will take one and a half to two years before it comes into force. In the US, there is also no relevant regulation,” said the head of the FSC.
South Korean President Yoon Suk-yeol’s initiative is to institutionalize digital currencies as soon as possible.
FSC has previously stated that when it comes to Central Bank Digital Currencies (CBDCs), international cooperation is key to maximizing the potential of such projects. Central banks that are actively exploring CBDCs should consider cross-border functionality at an early stage in the design of a national digital currency.
In August, seven large South Korean financial companies submitted applications for preliminary approval by regulators to create a virtual asset exchange. In September, FSC announced plans to launch a digital securities market to institutionalize and promote cryptocurrencies in the country.
Source: Bits
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