Choi Jong-ku Bids Farewell to the FSC
The recent resignation of Choi Jong-ku, the chairman of South Korea’s Financial Services Commission (FSC), has left many scratching their heads and raising their brows. Reports from The Korea Times confirmed that on July 18, Choi decided to step down, expressing a desire to broaden the choices available to President Moon Jae-in amidst a looming government reshuffle.
“I recently tendered my resignation to President Moon Jae-in to widen the scope of his choice before the expected reshuffle,” Choi remarked, leaving the public to ponder over his future endeavors.
The Peculiar Patterns of Finance Chair Resignations
Choi’s departure isn’t entirely shocking to those in the financial sector. There’s a quaint tradition, it seems, that finance chairs often don’t complete their terms. In fact, whispers have surfaced suggesting that Choi might throw his hat into the ring for a National Assembly seat in 2020. However, he categorically denied such rumors, leaving observers to wonder what his next move will actually be.
The ICO Controversy: A Tale of Bans and Regulations
Choi’s time at the FSC was marred by South Korea’s 2017 ban on initial coin offerings (ICOs), a heavy-handed decision made under his leadership. The country has historically been cautious about cryptocurrencies, and the ban was positioned as a protective measure against market volatility and manipulation.
To add to the drama, a spokesperson from the FSC mentioned some of the challenges associated with enforcing ICO-related legislation: “If there is an unlawful act, a third party has to intervene, but it is difficult to intervene until the transaction volume or price soars.” Quite the riddle, isn’t it?
Choi’s Stance on Cryptocurrencies: A Mixed Bag
Although Choi took a hard line on ICOs, he wasn’t completely against the idea of cryptocurrency itself. He demonstrated a more nuanced viewpoint regarding crypto exchanges during his tenure, advocating that they should hold bank accounts as long as they met stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) standards. His statements received applause from the Korea Blockchain Association, suggesting a growing acceptance of blockchain technology in the country.
The Future of Fintech in South Korea
In March 2018, Choi highlighted the potential of the fintech sector, shifting the FSC’s strategy from purely regulatory to a more supportive role towards innovative technologies. He expressed optimism, saying: “Fintech is an area that requires new technologies, and it will solve the youth job problem by increasing job positions for young people.” This outlook underscores Choi’s complex relationship with innovation in finance—he seems skeptical yet hopeful, a bit like a parent watching their kid ride a bike for the first time.
