South Korea’s financial authority has advised caution in allowing local firms to join the cryptocurrency industry. South Korea’s Financial Services Commission (FSC) has advised domestic firms to exercise caution while joining the cryptocurrency industry. FSC Chairman Kim Joo-Hyun delivered the remarks during a financial strategy seminar in Jung-gu, Seoul.
Joo-Hyun stated that further debate was required before local enterprises could join the cryptocurrency industry. On the other hand, South Korea has been intent on supporting innovation and the growth of the metaverse and the web3. The nation wants to capitalise on the possibilities of technology to strengthen its economy.
The FSC Expresses its Support for South Korean Crypto Marketplaces
Despite the warning, the FSC has increasingly supported the cryptocurrency business in recent months. The authority has even stated that it would encourage the deployment of the technology if it would safeguard investors from damage.
The FSC is also contemplating lifting its restriction on banks and financial organisations assisting cryptocurrency transactions.
Currently, it does not intend to enact new rules but will rely on current ones.
South Korea is a technologically advanced nation with a sizable younger population intrigued by cryptocurrencies.
It is home to some of the world’s largest electronics corporations, several of which have expressed interest in the cryptocurrency sector.
Korean Investors Have a Relatively High-risk Tolerance
According to Korean media sites, South Korean crypto investors have a considerably larger risk appetite than their worldwide counterparts.
Bitcoin and ether account for just around 26% of their portfolios, indicating that they invest in other tokens that are more volatile and risky.
XRP is South Korea’s second most popular cryptocurrency, accounting for 12.5% of total holdings. Dogecoin,
Cardano, and Solana, are among the other noteworthy tokens.