Catenaa, Thursday, September 4, 2025-Lee Eok-won, nominee for South Korea’s Financial Services Commission chair, faced backlash after stating cryptocurrencies have no intrinsic value and cannot serve as a store of value or medium of exchange due to high volatility.
In written responses submitted ahead of his confirmation hearing, Lee expressed skepticism over allowing pension and retirement funds to invest in crypto, citing market instability and speculative risk.
He also highlighted concerns around local crypto exchange-traded funds but committed to collaborating with lawmakers to advance the initiatives.
Industry players criticized Lee’s remarks as regressive, emphasizing that digital assets like bitcoin hold practical value through blockchain utility, including security and transferability.
Experts argued that dismissing crypto overlooks its growing adoption by corporations and governments worldwide.
Despite his caution toward cryptocurrencies, Lee expressed support for South Korea’s stablecoin initiative.
Endorsed by President Lee Jae Myung, the plan aims to regulate a local currency-pegged stablecoin market, aligning with similar moves in Japan, Hong Kong, and China to strengthen monetary sovereignty in the Web3 era.
Lee’s stance suggests a selective approach, advocating for innovation through stablecoins while maintaining a skeptical view of broader cryptocurrency developments.
The FSC, South Korea’s top financial regulator, is expected to play a key role in shaping the country’s crypto landscape under Lee’s potential leadership.
