Lee Chan-jin meets virtual asset business CEOs, "Do not focus on short-term performance or cause system outages"

FSS Chief - Virtual Asset Business CEOs Meeting

Lee Chan-jin, head of the Financial Supervisory Service, emphasized establishing user-centered responsible management in the virtual asset market and urged restraint from excessive events and the launch of high-risk products driven by competition.

On the 30th, Lee held a meeting with chief executive officers (CEOs) of virtual asset businesses in the DAXA conference room in Gangnam, Seoul, and made these remarks.

The meeting was attended by CEOs of four won-denominated exchanges — Dunamu, Korbit, Coinone, Streamy — CEOs of three coin exchanges — Dolphin, Bowman, Poblegate — and CEOs of three custodians — Korea Digital Asset, Korea Digital Asset Custody, and DSRV Labs.

Lee said, "Virtual assets are expanding their influence across global finance and the broader economy based on innovations such as asset tokenization and stablecoins," adding, "Coupled with the new government’s policy to build a digital asset ecosystem, significant growth is expected going forward."

He continued, "However, such growth and development can only be sustainable when users are respected as partners for mutual growth rather than simply targets for profit generation," and explained, "To place virtual assets on par with regulated financial products, user-centered responsible management must be established."

He added, "There must be no loss of user trust due to distorted competition that focuses solely on short-term results, such as excessive events and the launch of high-risk products," and emphasized, "Please remember that providing products and services that users can trust is the way for everyone to grow together."

Lee pointed out the virtual asset exchanges' 'system outage' incidents, saying, "If vulnerabilities expand into security incidents, as seen in recent cases at telecoms or financial companies, many people could suffer serious damage," and stated, "I want to reiterate that the competitiveness of virtual asset businesses must be rooted above all in IT safety."

He also said, "The government is pursuing the eradication of unfair trading in the capital market as a national agenda," and added, "Fairness and transparency are the foundation of the market, and the virtual asset market is no exception."

He asked for company-wide efforts to strengthen internal market surveillance functions, such as expanding market surveillance organizations and personnel and increasing investment in systems to detect abnormal trading, saying, "Please devote efforts to strengthening these functions," and said, "The FSS will also make further efforts to enhance user protection, including thoroughly recovering unfair trading gains and advancing surveillance systems such as AI and on-chain analysis."

Lee also urged risk management in line with expanded links between finance and the real economy.

He said, "With the expansion of links between virtual assets and finance and the real economy, such as stablecoins and virtual asset ETFs, small shocks in the virtual asset market can cause instability in finance and the real economy, so proactive management is necessary," and said, "When pursuing new businesses such as stablecoins, carefully analyze the ripple effects in advance and develop capabilities to respond flexibly to unexpected shocks such as sudden market changes."

Reporter Noh Jeong-dong, Hankyung.com dong2@hankyung.com