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<p>The probable new head of <a href="https://www.thecoinrepublic.com/2024/07/20/south-korea-launches-first-crypto-regulatory-framework/">South Korea</a>’s Financial Services Commission (FSC), Kim Byung-hwan, expressed concern over corporate investments in cryptocurrency during a confirmation hearing at the National Assembly’s Political Affairs Committee on July 22nd. Kim is expected to take over as chairman after current chairman Lee Hyun this summer.</p> 
<h2 class="wp-block-heading" id="h-south-korea-regulator-skeptical-of-crypto-expansion"><strong>South Korea Regulator Skeptical of Crypto Expansion</strong></h2> 
<p>Kim also stressed the importance of policies that focus more on protecting investors than on growing the market. He shared doubts about the opening of corporate and institutional investment in crypto exchanges. Thus, as Kim mentioned, previous market confusion requires certain precautions.</p> 
<p>Kim said the existing policies should shift the emphasis from market development to investor protection. He summarized the view on the topic that can be characterized as quite conservative regarding the role of corporations in cryptocurrency.</p> 
<h2 class="wp-block-heading" id="h-south-korea-debates-crypto-s-financial-role"><strong>South Korea Debates Crypto’s Financial Role</strong></h2> 
<p>Kim also wanted to debunk the notion that cryptocurrencies can completely replace conventional currency. He stated that only virtual assets issued by the private sector could partially substitute the central bank’s legal tender. This approach is in line with other regulatory issues regarding the stability and reliability of cryptocurrencies.</p> 
<p>Kim agrees with the conventional notion concerning financial products. He underlined that virtual assets are not similar to any other financial instruments. This marks a difference in the approach towards regulating cryptocurrencies compared to conventional financial assets.</p> 
<h2 class="wp-block-heading" id="h-kim-calls-for-balanced-crypto-etf-approach"><strong>Kim Calls for Balanced Crypto ETF Approach</strong></h2> 
<p><a href="https://www.dt.co.kr/contents.html?article_no=2024072202109963046008">Kim</a> was quite reserved about the approval of spot Bitcoin ETFs. He advised that the effect of similar actions being taken in the United States should be watched. This approach leans towards the stability already mentioned and carefully considers the precedents of international law.</p> 
<p>Lawmakers had called for the approval of <a href="https://www.thecoinrepublic.com/2024/07/14/spot-bitcoin-etfs-record-310m-inflows-best-since-early-june/">spot Bitcoin ETF</a>s. But Kim stressed that the issue needed to be managed more balanced. He said the government needs to address the volatility in the financial sector and measure its effects on financial organizations.</p> 
<p>Kim’s answers to the parliament members revealed his commitment to focusing on economic stability. He also stressed further dialogues on the regulation of virtual assets. Al’s more cautious approach is in line with a general regulatory shift in South Korea.</p> 
<h2 class="wp-block-heading" id="h-global-regulators-uncertain-on-crypto-integration"><strong>Global Regulators Uncertain on Crypto Integration</strong></h2> 
<p>Politicians have called on the regulatory authorities to follow Washington’s approval of spot Bitcoin ETFs. Nonetheless, regulators are still rather cautious. From Kim’s statements, it can be inferred that he likes to wait and watch international trends before acting.</p> 
<p>Kim’s hearing highlighted the legislative and supervision duality between the financial sector and the legislative sphere. Politicians, especially in the region, want markets to grow rapidly, while regulators like Kim stress investor protection and sustainability. This highlights the rather delicate dancing between the innovative and the controlled that is so characteristic of the crypto sphere.</p> 
<p>Kim’s approach reflects the general mood of regulators worldwide. Governments across the globe are in a dilemma about how to incorporate Cryptocurrencies into conventional financial systems. Kim’s approach, which portrays a rational and cautious attitude towards market regulation, makes this clear.</p> 
<h2 class="wp-block-heading" id="h-no-radical-shifts-expected-in-crypto-regulation"><strong>No Radical Shifts Expected in Crypto Regulation</strong></h2> 
<p>Kim agreed that further dialogue is necessary regarding the regulation of virtual assets. He pointed out that dialogue has to be constant to generate the right policies. This does not, however, detract from the fact that there is an understanding that there may be a need to alter and adjust the existing policies and methods.</p> 
<p>Legislators are expected to continue demanding more strong and preventive regulations in the crypto sphere. Nevertheless, Kim’s restrained approach means that radical changes in the near future are not expected. The regulatory attention will still be on the stability of the market and the protection of investors.</p> 
<p>With Kim taking over the position of FSC Chairman in the future, he will lay down the roadmap of crypto laws in South Korea. The same careful approach may also define the regulations’ future tendencies. Such a change will be critical for managing innovation while maintaining stability.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/07/23/south-korean-regulator-hesitant-on-corporate-crypto-bets-why/">South Korean Regulator Hesitant on Corporate Crypto Bets, Why?</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

South Korean Regulator Hesitant on Corporate Crypto Bets, Why?

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