Lee Eok-won questions crypto’s intrinsic value, opposes crypto in pensions, urges cautious regulation, while the industry calls for clearer digital asset policies.
Lee Eok-won, nominee for chairman of South Korea’s Financial Services Commission (FSC), has expressed doubts about the legitimacy of cryptocurrencies as financial assets. In written remarks submitted ahead of his confirmation hearing, Lee laid stress on the fact that virtual assets do not have any intrinsic value, which is the key difference between virtual assets and conventional financial products such as deposits and securities.
Lee Opposes Crypto in Pension Funds, Calls Investments High-Risk
He said that cryptocurrencies’ high price volatility makes it impossible for them to fulfill monetary roles such as use as a medium of exchange or a store of value. These comments match South Korea’s current rules on crypto. The government does not treat crypto as part of the financial system. Instead, it sees crypto as a risky, speculative asset.
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In addition, Lee expressed his opposition to the inclusion of cryptocurrencies in pension and retirement portfolios, deeming such investments high-risk and inappropriate for long-term financial planning. He said that the speculatory nature of virtual assets raises serious concerns about stabilising the income of future retirees.
Regarding whether or not a Bitcoin spot ETF would be approved in South Korea, Lee admitted there was still a lot of debate on this issue. He added that there are as many concerns as there are expectations and that it is important to study the trends in regulation all over the world before taking any steps. He said the National Assembly must discuss any such move. Further, he added that the move should follow a balanced introduction plan.
Though generally skeptical, Lee did not reject the role of digital assets all together. He intimated that areas like stablecoins have the potential for innovation if they are appropriately guarded. This reflects some willingness to follow developments as they unfold in the future, albeit within a well-regulated context.
Crypto Industry Pushes Back Against Lee’s “No Intrinsic Value” Claim
However, some members of the crypto industry have raised cause for concern following Lee’s comments. A spokesperson for a domestic virtual asset exchange took issue with the continually repeated assertion that cryptocurrencies have no intrinsic value. According to the exchange official, these views may have led to missed opportunities and may weaken South Korea’s position in the global digital economy.
Others in the tech industry have proposed that South Korea should consider having a dedicated regulatory body for digital assets. Some critics have said the FSC’s current approach is over-regulated and not sufficiently growth-oriented. One technology company executive commented that while the Digital Asset Framework Act is targeting support for the industry, there was an obvious gap between policy intent and reality.
Others think a dedicated digital asset institution would do a better job in addressing the specific needs of this rapidly evolving space, in particular, connecting the innovation and regulation worlds more effectively.
South Korea is preparing new rules for digital assets. Lee Eok-won’s views may play an important role in this process. The crypto industry now needs clear guidance and strong support. Lee’s cautious approach reflects current policy. However, his ideas could influence how other countries like Australia respond to global changes. South Korea’s future path will depend on the direction Lee takes if he becomes FSC chairman.
