Korean regulators are wary of domestic companies in the crypto market

The financial regulator in South Korea has suggested caution regarding allowing domestic companies to enter the crypto market.

South Korea’s Financial Services Commission (FSC) has called for caution in entering the crypto market with respect to domestic companies. Kim Joo-Hyun, chairman of the FSC, made the comments at a financial strategy forum held in Jung-gu, Seoul.

Joo-Hyun insisted that more discussion was needed to allow domestic companies to enter the crypto market. It’s understandable why Joo-Hyun would be a little cautious, given that there is risk involved. He was quoted as saying:

“It is true that new efforts and policies are necessary, but as social conflicts are great and opinions are divided, there is a need for further discussion on what position Korea will take… technical additions will be discussed in consideration of the specifications upon issuance and distribution of virtual assets. It is being discussed in the Office of Government Policy Coordination with the Ministry of Small and Medium Enterprises and Start-ups.”

However, South Korea has also been keen to promote innovation and encourage the development of web3 and the metaverse. The country wants to exploit the potential of technology to boost the economy.

FSC shows support for South Korea’s crypto markets

Despite the call for caution, the FSC has become more supportive of the crypto market in recent months. The authority has even said it will promote the use of the technology when necessary and if it will protect investors from harm.

The FSC is also considering whether to reverse its ban on banning banks and financial institutions from facilitating crypto transactions. As it stands, it is not looking to adopt new regulations and will instead make use of existing laws.

South Korea is a tech-savvy country, with a large portion of the younger population interested in cryptocurrency. It is home to some of the largest electronics companies in the world, which have also shown interest in the crypto industry.

Korean investors have a relatively high risk appetite

Korean media reports that South Korean crypto investors have a much higher risk appetite than their global counterparts. Bitcoin and Ether make up only about 26% of their portfolios, which means they spend their capital on other tokens, which are more exposed to volatility and risk.

XRP is the second most popular cryptocurrency in South Korea, accounting for 12.5% ​​of the holdings. Other tokens that have a notable presence are Cardano, Solana and Dogecoin.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action the reader takes on the information contained on our website is strictly at their own risk.