Kim Yong-bum, vice chairman of the South Korean Financial Supervisory Commission (FSC), attended a meeting earlier this week that was hosted by the Financial Stability Board (FSB) in Basel, Switzerland. The vice chairman served as a representative of South Korea at the meeting.

The FSB is an acclaimed international organization which is responsible for monitoring the global economic landscape and makes recommendations based on their findings. The FSB consists of a wide variety of members which include central banks and financial regulating agencies from over 24 countries. The FSB also includes 12 prominent international economic organizations among its members, including South Korea, the United States, China, South Africa, and Russia. Organizations which serve as FSB members include the European Central Bank (ECB), the International Monetary Fund (IMF), the World Bank, as well as the Bank of International Settlements (BIS).

According to Aju news, a prominent point of discussion during the meeting was cryptocurrency, as well as the policies needed to discourages instances of cybercrime, cybersecurity, and other concerns related to the industry. The South Korean representative, Kim, spoke out about the growing concern of international cyber transactions and its use towards nefarious activities, such as money laundering. Kim subsequently urged the international community to collaborate and stand together to curb such activities.

Kim stated that it is time to start a conversation about the future of cryptocurrencies and the stance that the international community will take on the subject. Kim added that financial authorities across the globe have a responsibility to acknowledge the financial risks associated with the industry. Furthermore, Kim warned that virtual currency activity, which falls outside of the jurisdiction of local regulating authorities, could impact consumer negatively.

During the meeting, Kim detailed his own country's approach to cryptocurrencies, as well as the steps they have taken to diminish possibilities for exploiting the industry. Notably, in December 2017, the financial regulator instigated a crackdown against banks that were related with South Korean cryptocurrency exchanges and issued an order for the banks to stop issuing virtual accounts, a former necessity for cryptocurrency trading. In addition, the government has prohibited foreigners and minors from participating in cryptocurrency trading. The country will implement a system at the end of this month which will enforce users to use their real-life identities.

Kim relayed his beliefs to the meeting attendees that if ignored, cryptocurrencies could prove dangerous. The regulator noted that the international community should aim to enhance transparency and diminish the crypto craze driven by speculative trading.

Following this, Kim appealed to the entire FSB organization and urged all members to take quick action by launching an investigation as to the risks that cryptocurrencies pose to financial economic stability. Kim concluded his appeal by stating that every country has a responsibility to adopt a regulation which will ensure transparency and sharing of information in order to avoid any illegal activity that might spring from international cryptocurrency transactions.

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