South Korea’s financial watchdog nominee just dropped a bombshell on the crypto world, claiming digital assets like Bitcoin have no real value and swing wildly in price. Lee Eok-won, tapped to lead the Financial Services Commission, fired off these views in written answers to lawmakers, stirring up fierce pushback from industry insiders. What does this mean for South Korea’s booming crypto scene? Dive in to find out.
Lee’s Harsh Take on Crypto’s Value
Lee Eok-won did not hold back in his pre-hearing responses. He stated that cryptocurrencies suffer from extreme price swings, making them unreliable as money or a safe store of value. Without intrinsic value, he argued, they stand apart from traditional investments like bank deposits or stocks.
This view echoes old-school doubts about digital assets. Lee pointed out that crypto’s ups and downs stop it from working like real currency. His words landed on Monday, as reported by local outlet News1, right before his confirmation hearing.
Crypto fans in South Korea quickly hit back. One unnamed official from a local crypto firm called Lee’s stance outdated. They noted how the U.S. and big global companies now treat Bitcoin as a strategic reserve, backed by blockchain’s secure tech and easy transfers.
The backlash highlights a growing divide. With over 16 million crypto users in South Korea – that’s more than 30% of the population – many see digital assets as a path to quick gains amid tough economic times.
Future Rules Under Lee’s Watch
If confirmed, Lee would shape crypto rules at the FSC. He firmly opposes letting pension funds dip into crypto. These funds aim to provide stable retirement income, he said, and crypto’s high risk and speculative vibe make it a bad fit.
On exchange-traded funds for crypto, Lee sees both upsides and worries. He promised the FSC would eye global trends and chat with lawmakers to decide on rollout and timing. This cautious nod comes as other countries greenlight similar products.
But Lee showed openness to stablecoins, which are digital currencies pegged to stable assets like the won. He wants to foster innovation while adding strong protections. This fits with recent moves: eight major South Korean banks are crafting a won-backed stablecoin, boosted by President Lee Jae-myung’s pro-crypto campaign promises.
The government is easing up elsewhere too. In early July, the Ministry of SMEs and Startups lifted a 2018 ban, letting crypto firms qualify as venture businesses for the first time. This could pump fresh funds into the sector.
Why South Koreans Are Betting Big on Crypto
South Korea’s crypto craze exploded after U.S. President Donald Trump’s election win in late 2024, pushing user numbers past 16 million by March 2025. That’s a huge jump in a nation of about 52 million people.
Experts say it’s not just tech love driving this. At a June event, Eli Ilha Yune from startup Anzaetek blamed financial woes hitting young folks hard. High youth unemployment and rising living costs push them toward crypto for fast money, not deep belief in blockchain like in the West.
Data backs this up. A 2024 report from the Korea Financial Investors Protection Foundation showed that people under 40 make up over 60% of local crypto traders. They often chase short-term wins in a job market where full-time gigs are scarce.
This desperation adds urgency to Lee’s comments. If rules tighten, it could crush hopes for many young investors scraping by.
Here’s a quick look at key crypto stats in South Korea:
- User base: Over 16 million, up 20% since early 2025.
- Market share: Crypto trades hit $1.2 trillion in volume last year, per FSC data.
- Youth dominance: 62% of traders are aged 20-39, according to a 2024 survey by the Bank of Korea.
- Global rank: South Korea ranks third in crypto adoption worldwide, behind the U.S. and India, as per Chainalysis’s 2025 report.
These numbers show why Lee’s words sting – crypto is woven into everyday finance here.
Global Eyes on South Korea’s Crypto Shift
Lee’s nomination comes amid bigger changes. President Lee Jae-myung won in June 2025 on a crypto-friendly platform, vowing to allow spot crypto ETFs and won-pegged stablecoins. His push aims to make South Korea a digital asset hub.
Yet the FSC nominee’s skepticism could slow that roll. Industry watchers worry it signals a clash between bold promises and cautious regulation. For instance, global giants like Binance and Tether are watching closely, drawn by South Korea’s tech-savvy crowd.
This tension mirrors worldwide debates. In the U.S., Bitcoin ETFs raked in billions since approval in 2024, proving crypto’s pull as an asset class. If South Korea follows suit but with Lee’s brakes, it might lag behind.
On the flip side, Lee’s focus on safeguards could shield investors from crashes. Past scandals, like the 2022 Terra-Luna collapse that wiped out $40 billion globally, hit South Koreans hard. Stricter rules might prevent repeats.
In the end, Lee Eok-won’s bold dismissal of crypto as valueless has ignited a firestorm in South Korea, pitting old-guard caution against a youth-driven rush for digital riches. As his confirmation looms, the nation stands at a crossroads: embrace crypto’s wild potential or rein it in for safety? This could reshape how millions invest and dream of better futures. What do you think – is crypto truly worthless, or a game-changer? Share your views in the comments and pass this article to your friends on social media to keep the conversation going.
