Financial regulator nominee cautious about corporate accounts for crypto assets

Kim Byoung-hwan, the nominee to head the Financial Services Commission, speaks during a parliamentary confirmation hearing at the National Assembly in Yeongdeungpo District, Seoul, July 22. Yonhap

The nominee to head the Financial Services Commission (FSC) said Monday that he is cautious about allowing corporations to hold bank accounts for transactions of cryptocurrencies.

Kim Byoung-hwan, a former vice finance minister who was nominated as the FSC chief earlier this month, made the remarks at a parliamentary session, in response to a lawmaker's question that Korea needs to allow cryptocurrency accounts for corporations.

"Taking into consideration the chaos we have experienced in the virtual asset market in the past, the current policy should prioritize investor protection," Kim told lawmakers.

Kim said there should be consideration about "whether the permission for corporations or institutions would be appropriate."

Asked by another lawmaker about whether Korea should allow transactions of spot bitcoin exchange traded funds, Kim also took a cautious tone, replying that financial authorities "need to look at the financial market stability and the impact on financial institutions." (Yonhap)