The South Korean drama regarding the cryptocurrency regulation is getting more twisted. The Supreme Court announced in its verdict by recognizing the measurable value of cryptocurrencies and thus declaring them as asset.
The government now has declared that the cryptocurrencies are not asset. The position of the government should be viewed separately from the views of the Supreme Court on this matter, said FRC chief Hong Sung-Ki.
This was the response of the South Korean chief regulation entity called Financial Service Commission (FRC). The Supreme Court ruling was made on this Friday i.e. 30th of the May. The case revolved around whether the cryptocurrencies can be categorized as an asset that are liable for confiscation.
The case was in relation to a porn website and seized 191 Bitcoins. The decision was crucial as the Supreme Court for the first time recognized the cryptocurrencies as property. The position of the FRC is that the cryptocurrencies are not legal tender.
This was bound to create confusion as it did. The FRC’s response further created the chaos as what is the status of the cryptocurrencies in South Korea is still dubious. The further responses from the Strategic and Financial office claimed that virtual currencies are not financial assets.
FRC is now closely examining the international trend in the crypto regulation. The country is poised to raise this issue again at a G-20 fora. The international trend will determine the direction of cryptocurrency regulation in Korea. At least that is the direction the FRC is going on.
There is a clear wedge between the opinions of the judiciary and executive on this issue. The parliament is also in limbo which signifies the state of the cryptocurrency business in South Korea. The platforms still operating in South Korea are now focusing their efforts on the self-regulation rather than relying on the government.