South Korea’s FSC Nominee Dismisses Crypto’s Intrinsic Value, Sparking Industry Backlash

South Korea’s Financial Services Commission (FSC) nominee, Lee, has ignited controversy by asserting that cryptocurrencies lack intrinsic value. His remarks, delivered in a written response to the National Assembly’s Political Affairs Committee, reinforce the government’s skeptical stance toward VIRTUAL assets. "They have different characteristics from traditional financial products such as deposits and securities in that they have no intrinsic value," Lee stated.

The nominee’s comments have drawn sharp criticism from the crypto industry, which fears prolonged regulatory hostility. Lee emphasized the volatility of virtual assets, arguing they fail to function as reliable stores of value or mediums of exchange. His position signals a continuation of restrictive policies, potentially stifling innovation and undermining South Korea’s competitiveness in the global digital asset market.

Industry participants warn that such rhetoric could deter institutional adoption and alienate the country’s youth, who remain avid participants in crypto markets. The debate highlights a growing divide between regulators and proponents of blockchain technology.