A new report from the Korea Institute of Finance (KIF) indicates that growing mainstream adoption of crypto in South Korea could make the traditional financial system “unstable.”
KIF’s senior researcher Lee Dai-gi suggested that the growing number of firms investing in volatile cryptocurrencies could experience a loss in profit, which may lead to a “deterioration of asset quality” and risk damaging the firms’ reputations.
While crypto’s impact in South Korea “is still insignificant,” the researcher said that the industry’s growth in the country since 2019 indicates that “the influence of virtual assets is expected to continue to expand.”
“Considering the increasing number of related crimes, virtual assets may emerge as a major threat to financial stability,” the report added.
In 2019, there were 914,000 crypto users in South Korea, according to KIF. In 2020, it rose to 1.21 million, and in 2021, there were 5.58 million users.
Korean regulatory agencies have long been considering how...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...