The new candidate for South Korea's financial regulator attacks Crypto Assets as "worthless"! 16 million investors strongly retaliate.

The chairman candidate of the South Korean Financial Service Commission (FSC), Lee Eok-won, frankly stated in his written testimony prior to the confirmation hearing that Crypto Assets lack any practical value and are unsuitable as currency or investment vehicles. This statement quickly sparked a strong Rebound from the South Korean Blockchain industry and millions of investors, highlighting the significant gap between regulators and market demand.

Candidate Position: Crypto Assets are too volatile and have no intrinsic value

According to a report from South Korean media on September 1, Lee Yi-gwon stated in his testimony that digital assets are different from stocks or bank deposits, lacking intrinsic value, and their extreme price volatility undermines their function as currency, making them unsuitable as a store of value or medium of exchange.

He reiterated that, according to the government's current position, crypto assets are neither legal tender nor financial products, and warned that retirement funds should not be allowed to enter this field. However, he is open to the regulation of stablecoins, believing that there is room for innovation under protective measures.

Industry Rebound: Ignoring Revenue and Adoption Reality

The South Korean blockchain industry has responded rapidly, accusing Lee Yiyuan of relying on "outdated traditional financial rhetoric" and ignoring the actual growth and value creation of the industry.

Adoption Rate Soars: Since 2022, the number of crypto investors in South Korea has increased from 9.7 million to 16 million, accounting for over 30% of the national population, a growth of more than 60%.

Incredible trading volume: The daily trading volume of local exchanges sometimes even surpasses that of the stock market, with total holdings exceeding 102 trillion won (approximately 70 billion USD).

Value Creation Case: Analysts point out that the token buybacks and revenue streams of platforms such as Hyperliquid, Tron, and Ethena can now rival those of publicly listed companies' stock buybacks.

Regulation Tightens VS Retail Enthusiasm Soars

Recently, South Korean regulatory authorities have strengthened restrictions on the crypto market:

The Financial Supervisory Commission recommends that asset management companies reduce their holdings of crypto-related stocks.

The Financial Supervisory Commission has ordered exchanges to stop providing lending services backed by digital assets or fiat currency deposits.

However, the enthusiasm of retail investors has not cooled down. In August, Korean investors sold hundreds of millions of dollars in Tesla stocks and turned to crypto agency platforms like BitMINE, which has recently become one of the largest holders of Ethereum. Data shows that the number of Korean purchases of major U.S. tech stocks has significantly decreased.

The Contradictory Situation of Policies and Markets

The cautious attitude of the regulatory authorities contrasts sharply with the active participation of the retail market. There is external concern about how President Lee Jae-myung's government will find a balance between risk prevention and supporting innovation, maintaining financial stability while not stifling South Korea's competitiveness in the global crypto industry.

Conclusion

The controversy sparked by Lee Billion's remarks reflects the core contradiction in the South Korean crypto market: regulators are concerned about risks and volatility, while investors and the industry focus on growth and innovation. With 16 million South Koreans already involved in digital assets, future policy direction will directly impact the development landscape of the world's third-largest crypto market.