April 19, 2024

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[THE INVESTOR] It’s “unwise” to shut down crytocurrency exchanges without giving it enough thought, according to the head of Upbit, Korea’s largest cryptocurrency exchange.

Through his SNS account, Lee Sir-goo said that while measures seem necessary to protect investors, it would be an unwise way of preparing for the future since cryptocurrency holds one of the keys to innovating society. “It feels like cryptocurrency is being attacked based on the perspective of existing frameworks,” Lee added. 

The CEO conceded that there is indeed a bubble, but that in the future, initial coin offerings may become the norm for raising funds instead of IPOs, which call for complex procedures. ICOs are simpler in that companies can easily draw investors online, with the investments being made in cryptocurrency.

“Upbit issues white papers on all of the cryptocurrency being traded with us to make sure users are aware of the intent and usage of all coins,” Lee said, stressing that the exchange will do all it can to offer transparent information.

The CEO’s comments come as the government is pondering over what other measures to put in place to cool the digitial coin market. The coins trade much higher than global prices, causing critics to worry over the gap.

Bittrex-backed Upbit has daily trade reaching 5 trillion won (US$4.7 billion). Kakao holds around 20 percent in the firm. The CEO was one of the co-founders of Kakao.

By Kim Young-won (wone0102@heraldcorp.com)