Korean FSC Chairman Orders Officials To Report Cryptocurrency Holdings

Crypto regulations have been strengthened in South Korea lately, and the latest development sees various reporting requirements be imposed on the Financial Services Commission (FSC) employees. Eun Sung-soo, the Chairman of the FSC, had demanded that the commission’s officials who may be holding crypto of their own immediately file reports detailing their investments. The deadline to do this is by the 7th of May 2021.

The situation with cryptocurrencies in South Korea is still evolving, as the country’s new tax legislation is being met with strong resistance from numerous crypto proponents. Kim Boo-kyum, the country’s new Prime Minister Nominee, who was nominated by Moon Jae-in, the country’s current President, had recently announced that his team would investigate the new crypto tax legislation.

FSC employees under pressure

As per the directive of the Chairman, those employees of the FSC who directly manage different tech developments relating to virtual currency will be required to file the aforementioned reports. Additionally, the employees whose main duties outline the drafting and subsequent implementation of laws pertaining to virtual currency, as well as those who may manage and report on various crypto exchanges, will all also be required to file the reports as well.

This decision by Eun-Sung soo had come after a considerable lack of appropriate regulation regarding the investments of the various FSC officials had been noted. The lack of regulations had been compared to the regulation of more traditional and pre-existing financial services and products.

Moreover, although the employees are to notify the Chairman should they have made investments in cryptocurrency or if they had previously speculated on it, Lee Kyung-min (a reporter for the Korea Times) had realized that the penalties to be imposed for violating the new policies are relatively soft and lenient in nature. “The measures are not legally binding, and the fines for breaking them are quite light,” the report had stated.

Eun-Sung soo faces heavy criticism

The FSC Chairman had faced considerable backlash following the announcement of his latest policies. Matters were only worsened when he compared the crypto investors and holders as ‘children who need to be taught about managing their finances by the adults’, sparking outrage from the South Korean citizens (the youth in particular) who believe that not only are the Chairman’s comments out of line and extremely condescending, but they are also hypocritical in nature as Eun’s own real state has increased in value whereas many of the everyday citizens struggle to own a home or possess any kind of substantial financial assets.

The outrage has since resulted in a petition calling for the immediate removal of Eun-Sung soo as the Chairman of the FSC, and over 130,000 people have signed it as of the time of this writing.