As local news outlet The Korea Times reported, the governor also declared the FSS will be laboring on crypto regulatory “issues” in cooperation with other regulators. Yoon Suk-heun, who will officially start his work on May 8, claimed that better crypto regulation “would produce” the kind of secure financial system that makes crypto-related products more accessible. After South Korea prohibited anonymous trading on domestic crypto exchanges in December of this year, hearings widesprode that an all-out crypto ban in the country was imminent, a claim denied by South Korea’s Finance Minister in January.
Yoon did not response a question about how the FSS will operate with domestic crypto exchanges, vice replying that “there are a lot of issues that need to be addressed and reviewed. We can figure them out but gradually.” After the non-anonymous trading prohibition was appointed – which also banned non-resident foreigners and South Korean citizens under 18 from trading – the “daily transactions of cryptocurrencies plummeted to around 400 billion won from 4 trillion won before the financial regulators implement the new regulation," VP of South Korean exchange Bithumb Lee Jeong-ah told The Korean Times.
But you can't entirely kill the markets by simply imposing regulations. What the new FSS chief should think about is how the regulators should provide remedies to help crypto trading and blockchain technology get better.
UpBit, South Korea
South Korean government authorities were forbidden from both trading and holding cryptocurrencies in March of this year. More recently, in one of the first more friendly moves relatively to crypto sphere, a group of South Korean lawmakers presented a law to make the domestic launch of Initial Coin Offerings (ICO) legal, albeit supervised strictly by the Ministry of Science and ICT and the Financial Services Commission (FSC), which leads the FSS.