The latest Cabinet reshuffle involving the justice minister and the chief financial regulator might lead to a review of the government’s current negative policy on cryptocurrencies.
Korea Export-Import Bank of Korea President Eun Sung-soo was named to lead the Financial Supervisory Commission.
Chief Presidential Secretary for Civil Affairs Cho Kuk would lead the justice ministry. The two would do business following confirmation from the National Assembly.
It is still unclear whether Eun and Cho would be different from their predecessors. Outgoing Justice Minister Park Sang-ki had described the cryptocurrency trading as casino-like gambling.
Eun’s predecessor Choi Jong-koo blacklisted the cryptocurrency traders. He banned blockchain startups from raising capital through initial coin offering. He indirectly twisted the arms of banks not to open accounts with cryptocurrency investors and exchanges.
Choi also refused to recognize cryptocurrencies as financial assets. All cryptocurrency business is outside the boundary of the South Korean financial regulator.
Skeptics say it is too naïve to expect a U-turn from the current policy on cryptocurrencies. However, they predict the new Cabinet members would review the current stance.
For the past two years, public perception of cryptocurrencies has changed.
The global anti-money laundering agency Financial Action Task Force has issued a guideline on cryptocurrencies.
The agency also published a rule on ways of preventing the use of cryptocurrencies in crime financing and money laundering.
The South Korean government would have no choice but to review the global guideline on the cryptocurrency policy, analysts predicted.
