‘Wrong Way’ VS’Investor Protection’… Cryptocurrency institutionalization dilemma

The fluctuating virtual currency market. yunhap news

With the rapid increase in cryptocurrency transactions such as bitcoin, mainly in the 20s and 30s, voices from the politics that institutionalization such as investor protection and exchange regulation are necessary.

However, the government, which regulated cryptocurrency as a means of speculation, is struggling with’institutionalization’, and the confusion surrounding cryptocurrency is expected to continue for the time being.

◇ All parties and parties are urged to’institutionalize’ virtual currency

Together with Democratic Party lawmaker Lee Kwang-jae. Reporter Yoon Chang-won

In addition, Rep. Lee Gwang-jae, one of the Democratic Party’s sleeping dragons, appeared on the CBS radio’Kim Hyun-jung’s News Show’ on the 26th of last month and emphasized the’institutionalization’ of virtual currency.

He pointed out, “In order not to become a speculation board (virtual currency), it is correct to create a system and stabilize it so that it can be converted into investment,” he pointed out that “it is a problem that we are not changing, although the United States and advanced countries are all changing.” .

“In 2017, JPMorgan announced at the time that this was a scam, but now it is issuing coins. Eventually, we will have to develop a new challenging aspect and reduce the risk factor, speculative factor.” Emphasized.

Democratic Party Congressman Park Yong-jin Facebook capture

Rep. Park Yong-jin of the same party also urged institutionalization, such as the exchange licensing system, saying, “We must reorganize the institutional framework of cryptocurrency and play an active role in protecting investors.”

Not only the ruling party but also the opposition party are voicing for institutionalization. On the same day, former president Ho-young Joo, the power of the people, decided to organize a cryptocurrency TF on the same day, saying, “We must discuss not only the (government) cover, but also how to institutionalize it and protect investors.”

◇ The government draws a line of’not subject to protection’

Hong Nam-ki Deputy Prime Minister of Economy and Minister of Strategy and Finance. Reporter Yoon Chang-won

However, the government’s position is firm. On the 27th of last month, Hong Nam-ki, Deputy Prime Minister of Economy and Ministry of Strategy and Finance, said, “It is the opinion of the Financial Services Commission that it is difficult to view virtual assets as financial investment assets specified in the Capital Market Promotion Act.” I reconfirmed.

Regarding institutionalization, he said, “Because the specific financial information law has been revised and enforced, it is expected that the transaction will be made transparently after meeting the requirements as an exchange,” he said. “If this is institutionalized, you can think that it will proceed to a level of half institutionalization.” said.

In a word that is a long distance from institutionalization centered on politics, it is clear that there is no intention to embrace cryptocurrency as institutional finance.

Finance Commissioner Eun Seong-soo answers questions from members of the Assembly at the 1st Political Affairs Committee general meeting of the 386th National Assembly (temporary assembly) held at the National Assembly on the 22nd of last month. Reporter Yoon Chang-won

Earlier at the meeting of the National Assembly’s Political Affairs Committee on the 22nd, Eun Seong-soo said, “(Virtual currency) is an unacceptable currency and is a virtual asset. He said, “I am worried about the part where the speculative fever is blowing,” he said.

He said, “I don’t think I should protect the people because they have a lot of investment and interest,” he said. “If you go the wrong way, you have to talk about it as the wrong way.”

Bank of Korea governor Lee Ju-yeol also said on the 15th, “It is a fact that (virtual currency) has no intrinsic value and has a large limit on its use as a payment method,” he said. “If cryptographic asset investment becomes excessive, it is possible that loans to investors will become insolvent. There is also a high risk in terms of financial stability,” he devalued.

◇Preparation of regulatory measures in each country… ‘What have you been doing in 3 years’

As such, the government still does not recognize cryptocurrency as a means of transaction or financial product, but the government’s worries are deepening as the politics, especially the ruling party, urge the institutionalization of cryptocurrency.

However, it is also true that if cryptocurrency is introduced into institutional finance, as the financial committee chairman Eun Seong-soo remarked, it is also true that investors may receive it as a signal that the Korean government also acknowledged the cryptocurrency, which could lead to a larger market size.

Different types of cryptocurrencies. yunhap news

An official from the financial authorities said, “There seems to be a negative perception from the Financial Services Commission about institutionalizing virtual currency.” “It could be something that the government has approved,” he said.

However, as the global cryptocurrency investment craze is blowing, especially in Korea, the fierce rage beyond the craze to the extent that the’Kimchi Premium’ is attached, the government is in a situation where it is impossible to be consistent as it is now.

For example, in the US, the heads of the federal government, such as Treasury Secretary Janet Yellen and the Fed Chairman Jerome Powell (FRB), are blatantly showing negative views on cryptocurrency, while each local government has enacted laws to manage the cryptocurrency market. He is using a two-track strategy.

New York State, where Wall Street is located, enacted a law related to virtual currency in 2015 to regulate virtual currency exchanges, and it also regulates the virtual currency market based on existing laws in Washington State. Coinbase, a cryptocurrency exchange, was able to be listed on the 14th of last month thanks to this institutional foundation.

Japan has also enacted laws to strictly regulate cryptocurrency exchanges, and Hong Kong only allows cryptocurrency trading to professional investors. Singapore is implementing a licensing system for cryptocurrency exchanges.

These countries also have a common point that they have prepared a device to prevent consumers from harming the cryptocurrency transaction through minimum regulations rather than acknowledging and fostering the cryptocurrency market itself.

An official in the financial industry said, “The government seems to be cautious that institutionalization of virtual currency will incite speculation,” and pointed out that “yes, neglecting it at all can increase side effects.”

“When the cryptocurrency market overheated in 2018, we should have researched and prepared measures for institutionalization and regulation, but when the market subsided, we didn’t care at all.” “The market overheated again in 3 years, but there were no clear countermeasures, so just the market itself. Are you trying to do nothing without acknowledging that?” he asked.

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