Lee Eok-won, the nominee to head South Korea’s Financial Services Commission, drew heavy criticism this week after dismissing crypto as lacking any real value in his written testimony ahead of confirmation hearings, local media reported on Sept. 1.

Lee said digital assets do not possess intrinsic worth in the same way as equities or bank deposits, and argued that their price swings undermine their ability to act as money. He further stated that the extreme volatility experienced by digital assets makes them unsuitable as a store of value or as a medium of exchange.

Lee’s position is consistent with the government’s view that digital assets are neither legal tender nor financial products under the financial regulatory regime.

The FSC chair nominee warned against allowing retirement and pension funds to invest in the sector but expressed openness to regulating stablecoins, noting that they could be managed with safeguards while leaving room for innovation.

Industry pushback

The country’s blockchain sector rejected the remarks, with many in the industry arguing that the statement ignores the revenue and adoption being generated across the industry.

Since 2022, crypto adoption in South Korea has surged from about 9.7 million investors to more than 16 million by early 2025, representing over 30% of the population and growing more than 60% in just over two years.

Trading activity on local exchanges has at times exceeded stock market volumes, and total holdings have climbed above 102 trillion KRW ($70 billion), highlighting how digital assets have rapidly become a mainstream investment choice for South Koreans.

An analyst at Xangle, a local data firm, accused Lee of relying on outdated arguments once common among traditional finance leaders.

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Author: Assad Jafri