The new head of South Korean financial regulatory agency has hinted that he will consider relaxing the country's cryptocurrency regulations.
Yoon Suk-heun, who was confirmed as the new Governor of Financial Supervisory Service (FSS), was addressing a press conference in Seoul Tuesday when he shared his outlook on financial policies and cryptocurrency regulations.
President Moon Jae-in on Tuesday approved Financial Services Commission's (FSC) nomination of Yoon Suk-heun to lead the government agency overseeing the country's financial and cryptocurrency regulations.
South Korea has banned initial coin offerings (ICOs) and made identification verification in crypto trading mandatory, but the new Governor seems to embrace a more lenient approach.
Asked if the country's stiff cryptocurrency regulations will be eased, the new governor said, "When you see ups and downs of the prices of cryptocurrencies, then it's understandable that cryptocurrencies are not currencies, but it's hard to agree with opinions that cryptocurrencies are not financial assets."
"The government should make it clear what needs to be regulated and what things need to be lifted. Once these plans are implemented, then the market will be stabilized as cryptocurrencies will become less speculative," according to Yoon Suk-heun. He said FSS will announce updates on cryptocurrency regulations once the regulator reaches a consensus.
Regarding applying new regulations to the domestic cryptocurrency exchanges, Yoon said better regulation would produce a more stable financial system where related services and products would be more likely to make them serviceable, and that would further improve the system.
Yoon is known as an "activist and reformist," according to South Korean media.
The South Korean authorities had taken several regulatory actions to control the crypto frenzy that has hit Asia's fourth-largest economy, which has also emerged as the world's third-largest market for cryptocurrency.
In March, the government imposed a ban on public servants from either holding or trading cryptocurrencies. However, the government seems to have eased the hardline approach recently.
An overwhelming increase has been reported in the commission-related sales of South Korean cryptocurrency exchanges.
For comments and feedback contact: editorial@rttnews.com
Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.