South Korea FSC nominee says crypto has ‘no intrinsic value’

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Lee Eok-won, the nominee for chairman of South Korea’s Financial Services Commission (FSC), has made no bones about his feelings toward cryptocurrency. And let’s just say, it wasn’t a love letter.

In a Monday report by News1, Lee said that “crypto has extreme price volatility, lacks monetary function” and, oh yeah, “has no intrinsic value.” Yes, he really went there. He continued by noting that virtual assets are like the eccentric uncle at the family reunion-“they’re not really part of the financial family.” He went as far as saying they differ from “traditional financial products” like deposits and securities because they’re just, well, useless. What a bold statement to make right before his confirmation hearing.

Apparently, Lee believes that cryptocurrency’s erratic behavior makes it impossible to treat it as a reliable store of value. He was like, “Can we please stop pretending this is a stable form of currency? It’s a hot mess!” Unsurprisingly, the South Korean crypto industry wasn’t thrilled with his remarks. An anonymous crypto company official promptly chimed in, calling Lee’s take “wrong,” especially when, as they pointed out, big-time global corporations are holding crypto as a “strategic reserve.” Because nothing says “stable” like Bitcoin, right?

What’s Next for South Korea’s Crypto Regulation?

Lee also came out swinging against the idea of pension funds investing in crypto. “We don’t let people spend their retirement savings on lottery tickets for a reason,” he explained. He went on to warn about the perils of using hard-earned, future-proof funds to gamble on digital tokens with all the stability of a toddler on a sugar rush.

As for crypto exchange-traded funds (ETFs), Lee’s stance was, predictably, cautious. He admitted there were “expectations and concerns,” which basically translates to “We’ll see how this shakes out after we consult with our lawmakers, but we’re not holding our breath.”

But don’t worry, folks-Lee isn’t totally against innovation. He promised that the FSC would still be open to creating opportunities for crypto projects, as long as there’s some kind of safety net in place. After all, when your currency is more volatile than a reality TV star’s career, a little safeguard can go a long way.

In another eyebrow-raising development, South Korea’s Ministry of SMEs and Startups has plans to lift the restrictions that have prevented crypto companies from qualifying as venture businesses. Maybe this is a sign that the government is willing to embrace crypto on a limited, cautious scale. Either that, or they’re looking for a new way to deal with all the “accidental investments” from the younger generation.

The Youth of South Korea and Crypto: A Desperate Gamble?

As for South Korea’s crypto craze, we’re not just talking about blockchain enthusiasts here. Data from March showed that crypto exchange users in South Korea now number over 16 million-yep, over 30% of the population. But before you start thinking it’s all about the tech, let’s get real. During a late June crypto event, Eli Ilha Yune, the chief product officer at Anzaetek, explained that the driving force behind this adoption wasn’t some lofty belief in Web3. Nope, it’s the fact that the younger generation is so financially desperate that they’re betting on crypto like it’s a get-rich-quick scheme.

So, it looks like the younger crowd’s fascination with crypto isn’t about the future of finance-it’s about needing something, anything, to escape the crushing weight of financial uncertainty. And hey, who can blame them? In a world where a stable job feels like an urban myth, a volatile digital asset might seem like the next best thing.

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2025-09-01 16:40