April 19, 2024

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[THE INVESTOR] Korea‘s top financial regulator said on Jan. 8 it is seeking deeper cooperation with regulators in China and Japan to curb speculative transactions of cryptocurrencies.

Choi Jong-ku, chairman of the Financial Services Commission, said vice finance ministers from the three nations had exchanged ideas on regulating cryptocurrencies during a meeting in Korea last December.

Korea aims to “set up a detailed system of cooperation” with China and Japan, Choi told reporters.

The FSC chief warned against an “irrational” trend of investing in cryptocurrencies, saying a “fever of speculative investment in cryptocurrencies is ongoing.”

“However, cryptocurrencies are unable to play a role as a means of payment,” he said.

The FSC is conducting on-site inspections into six retail banks over accounts used in trading cryptocurrencies, Choi said.

The government will also strengthen requirements of local exchanges to prevent money laundering and toughen punishments for crimes related to virtual currency, Choi said.

By Alex Lee and newswires (alexlee@heraldcorp.com)