South Korean regulator nominee reject cryptocurrency as financial asset: report

Koh also reiterated his commitment to curb increases in household debt.

The nominee for South Korea’s financial regulator said that it is hard for cryptocurrencies to be recognized as a financial asset due to international opinion regarding virtual currencies.

Koh Seung-beom, the nominee for the Financial Service Commission, told journalists that international agencies and experts echo this opinion regarding virtual currencies, reports Yonhap.

"I understand that the Group of 20, the International Monetary Fund, other international agencies and a considerable number of experts find it difficult to see virtual currencies as a financial asset, and think they could not function as a currency," Koh said in a meeting with journalists.

Korean investors have reportedly been heavily buying virtual currency. Young people in particular have sought out cryptocurrency as it is seen as a lucrative asset that will help them afford a house, saying that they could not afford to do so with just their incomes amidst skyrocketing home prices.

In the same meeting, Koh reiterated his commitment to make sure financial authorities put the top priority on curbing a sustained increase in household debt. Some experts have warned of Korea’s household debt, calling it a ‘time bomb.’