New Financial Supervisory Service Governor is looking towards softening regulations previously imposed upon ICOs and domestic cryptocurrency trading.
Last year, the FSS banned ICOs and anonymous cryptocurrency trading, which caused a destabilization in the domestic cryptocurrency market, as well as having a negative influence over the global industry.
Governor Yoon Suk-heun stated that they are to begin cooperation with the Financial Services Commission (FSC) to investigate the existing regulations and policies concerning cryptocurrencies.
“Regarding cryptocurrencies, there are some positive aspects…The FSS will collaborate with the FSC when an inspection on policies and financial institutions has different configurations associated with different scopes. FSC inspects policies, while the FSS examines and supervises financial institutions but with the oversight of the FSC.”
As South Korea was one of the largest cryptocurrency markets, such a regulatory softening might stimulate the overall growth of the industry. We might even see an increase of cryptocurrency price as demand for it will most likely grow after the regulatory framework has become more friendly towards exchanges and trading.