Lee Eok-Won, the nominee for the South Korea committee of Korea in Leiden, this week attracted serious criticism after rejecting crypto as the lack of any real value in his written testimony prior to confirmation hearings, local media reported on 1 September.
Lee said that digital assets do not have intrinsic value in the same way as shares or bank deposits, and argued that their price fluctuations undermine their ability to act as money. He further stated that the extreme volatility experienced by digital assets make them unsuitable as a store of value or as an exchange medium.
Lee’s position is consistent with the position of the government that digital assets are neither legal tender nor financial products under the financial regulatory regime.
The nominated FSC chairman warned against allowing pension and pension funds to invest in the sector, but expressed openness to regulating stablecoins, and noted that they could be managed with guarantees while they had room for innovation.
Pushback in the industry
The blockchain sector of the country rejected the comments, where many in the industry claim that the explanation ignores income and acceptance throughout the industry.
Since 2022, the acceptance of crypto in South Korea has risen from around 9.7 million investors to more than 16 million in early 2025, which represents more than 30% of the population and more than 60% grows in just over two years.
The trading activity at local fairs has sometimes surpassed the stock market volumes and the total companies have risen above 102 trillion KRW ($ 70 billion), and emphasizes how digital assets quickly become a regular investment choice for South Koreans.
An analyst at Xangle, a local data firm, accused Lee to rely on outdated arguments that are once common in traditional financial leaders.
He pointed to recent token return and income flows from platforms such as hyperliquid, tron and ethena as proof of value creation that is comparable to shares purchases of companies.
Policy provision versus the demand for retail trade
South Korean supervisors have strengthened restrictions in recent months, because the interest in the country’s retail trade continues to rise.
The Financial Supervision Service advised domestic assets managers to scale up the returns in crypto-related shares, while the FSC exchanges ordered to stop offering credit services supported by digital assets or FIAT deposits.
Despite the stricter attitude, Retail enthusiasm for crypto climbing continues. Investors sold hundreds of millions of dollars in Tesla shares in August, the biggest removal since the beginning of last year, while they focused on funds in crypto -proxies such as Bitmine, who recently became the largest Ethereum holder.
Data also showed a steep fall in the South Korean purchases of large American technical shares compared to earlier this year.
The contrasting positions between regulators and investors have open questions about how President Lee Jae-Myung’s administration will be careful with the growing hunger of the public for digital assets.