Lee Eok-won, nominee to chair South Korea’s Financial Services Commission (FSC), has stirred controversy after dismissing cryptocurrencies as “valueless” in remarks submitted ahead of his confirmation hearing. His comments, reported by local outlet News1, have triggered backlash from industry stakeholders who argue the stance is out of step with global trends.
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Crypto “not a currency”
In a written response to lawmakers, Lee argued that cryptocurrencies lack intrinsic value—unlike traditional financial products such as deposits and equities. He stressed that the high volatility of digital assets prevents them from fulfilling the basic functions of money, such as serving as a stable store of value or medium of exchange.
Lee also voiced concerns about allowing retirement or pension funds to invest in crypto, pointing to the speculative nature of the market and the risks it poses to long-term savings.
Skepticism on ETFs, but open to discussion
The FSC has been weighing whether to permit spot crypto exchange-traded funds (ETFs) in the domestic market, a move closely watched by investors. Lee acknowledged concerns about these products but said he would work with lawmakers to study the issue further.
Critics in South Korea’s blockchain community, however, described his views as “regressive,” noting that governments and corporations worldwide are increasingly integrating cryptocurrencies into their financial systems. Some experts countered Lee’s remarks by highlighting the practical utility of blockchain-based assets, including security, transferability, and their growing role in digital commerce.
A cautious nod to stablecoins
While critical of cryptocurrencies such as Bitcoin, Lee expressed more support for stablecoins, saying he would seek to strike a balance between innovation and safety.
South Korea, backed by President Lee Jae-myung, is already advancing plans to regulate a won-pegged stablecoin market. The strategy mirrors developments across Asia, with Japan, Hong Kong, and China also exploring local currency-backed stablecoins to bolster monetary sovereignty in the Web3 era.
Lee’s stance suggests he may help guide South Korea into the stablecoin space while keeping a conservative approach toward other crypto assets.
Looking ahead
The debate underscores the divide between policymakers focused on stability and innovators pushing for greater adoption of digital assets. As South Korea prepares to shape its next phase of financial regulation, the balance between caution and competitiveness will be central to how the country navigates the future of crypto and Web3.
