Financial Supervisory Service (FSS) Governor Yoon Seok-hun has called for charting global regulatory system for cryptocurrencies.
In the 20th annual conference of the Integrated Financial Supervisors Conference at Seoul’s Lotte Hotel, the governor said all countries should pool their wisdom to chart the global regulatory standards for cybercurrencies.
“As virtual currencies are traded cross-border, it is meaningless for individual countries to set their regulations,’’ he said, adding that cross-border trading needs global rules.
The governor said the South Korean government has been mapping out legal and institutional support for financial companies so that they can use such digital technologies as big data and blockchain.
But he made it clear the government will root out illegalities linked to cryptocurrency trading.
He showed concern that disintermediation of financial services, the use of blockchain, will likely infringe upon privacy and post cybersecurity threat to consumers.
The FSS encourage financial innovation but seeks to minimize adverse effects. The Korean government has been mapping out a legal and institutional mechanism for the trading of virtual currencies, but individual countries have limits in setting rules on the emerging cybercurrency trading, the governor said.
He also urged the participants of the 16 countries to share information and strengthen cooperation in their common goal of blocking money laundering.
