South Korea’s new Financial Supervisory Service Governor, Yoon Suk-heun has confirmed speculation that the country’s strict cryptocurrency regulations may be scaled back, according to a report in The Korea Times. Yoon signaled the potential change in remarks to reporters after his nomination to head the FSS was approved by South Korea’s President.
Governor Yoon noted that there are some positive aspects of cryptocurrency and said, "The FSS will collaborate with the FSC when an inspection on policies and financial institutions has different configurations associated with different scopes. FSC inspects policies, while the FSS examines and supervises financial institutions but with the oversight of the FSC."
Yoon would not provide details about how the FSS would decide which methodologies to use when dealing with digital currencies, noting that there are a variety of concerns that the agency needs to address in that area. However, he did express confidence that the FSS would be able to deal with those issues over time.
The new FSS Governor also explained why it was important to tweak the regulations to make them more effective. He suggested that better regulations would translate to greater stability in the financial system and improve the serviceability of products and services in that space.
South Korea’s cryptocurrency industry will likely welcome the relief, as the country’s trading volume has fallen sharply over the last year. And while some market observers expected the government’s real-name registration requirements to help bolster the trading environment, those regulations had a different effect: some banks simply stopped offering services to cryptocurrency traders.
Other changes may be coming as well, as the Times reports that legislators are currently drafting a bill to provide legal status to initial coin offerings. Those offerings were banned in 2017.