Financial Services Commission Announces "Precautions Regarding Virtual Currency Transactions"

"To Raise Awareness"
Attention Drawn Amid Intense Tug-of-War Between Main Ministry and Ministry of Economy and Finance

[Asia Economy Reporter Kim Jin-ho] Recently, as cryptocurrencies have been plummeting day after day, the Financial Services Commission (FSC) has issued guidelines to investors regarding precautions related to trading.

Amid intense jockeying between the Ministry of Economy and Finance and other agencies over which department will serve as the control tower for cryptocurrencies, the FSC officially issued an investor advisory on its website.

According to financial authorities on the 26th, the FSC posted a notice on its homepage popup window the day before stating, "Customers trading cryptocurrencies should pay attention to the registration status of cryptocurrency operators."

Following the release of a related press release on March 16, the FSC issued this additional popup advisory to "raise awareness," according to an FSC official.

The notice includes guidance on ▲ the stance of major international organizations and central banks that cryptocurrencies have no intrinsic value ▲ the possibility that cryptocurrency exchanges may suddenly shut down ▲ the fact that cryptocurrencies are highly volatile assets ▲ and warnings about cryptocurrency-related scams.

In reality, recent sharp fluctuations in cryptocurrencies have caused significant losses for investors. In particular, there are many young people investing with borrowed money, raising concerns among financial authorities that related risks could spread to banks and other financial institutions. Additionally, the likelihood of mass closures of the approximately 200 known cryptocurrency exchanges due to amendments to the Act on Reporting and Using Specified Financial Transaction Information (the "Special Financial Transactions Act") is also problematic.

On the 22nd of last month, FSC Chairman Eun Sung-soo stated at the National Assembly's Legislation and Judiciary Committee plenary session that "the government cannot protect all cryptocurrency investors," which sparked backlash from investors. There is also speculation that the FSC feels pressured as the National Assembly has repeatedly proposed bills designating the FSC as the main regulatory body.

According to CoinMarketCap, the price of Bitcoin peaked at $64,450 on the 14th of last month but dropped to $37,000 as of 6 a.m. on the day of reporting, halving in just over a month. This decline is due to successive regulatory measures by central governments worldwide. In particular, the downward trend intensified after the Chinese government announced a ban on both Bitcoin trading and mining.

This content was produced with the assistance of AI translation services.