South Korea sees limited crypto risk to markets, vows tighter oversight

The South Korean government has concluded that the risk of cryptocurrency price volatility spilling over directly into traditional financial markets is limited, The Asia Business Daily reported. However, authorities plan to strengthen market surveillance to prevent market instability from growing, citing incidents that have undermined trust, such as a recent mistaken Bitcoin payment at the South Korean crypto exchange Bithumb. The government also intends to inspect the internal controls of exchanges and push for institutional improvements. The assessment was made during a market situation review meeting attended by Deputy Prime Minister for Economy Gu Yun-cheol, Bank of Korea Governor Rhee Chang-yong, Financial Services Commission Chairman Lee Eog-weon, and Financial Supervisory Service Governor Lee Chan-jin.