Finance Committee Chairman Eun Seong-soo said to cryptocurrency exchanges that are concerned about closing down business due to the enforcement of the Special Financial Transactions Information Act in September. We will do what we have to do,” he said on the 26th. It was also clarified that it could not be held responsible for price fluctuations.
Chairman Eun talked with reporters after finishing the’Korea Fintech Week 2021′ held at the Conrad Hotel in Yeouido, Seoul this morning.
Chairman Eun made an active clarification regarding the announcement last month that the National Assembly’s Political Affairs Committee would not protect cryptocurrency investments. At that time, Chairman Eun was controversial, saying, “The government cannot protect all those who have invested in virtual assets.”
Regarding this, Chairman Eun said, “There are various types of investor protection, but in terms of protecting the money entrusted well, there is a special special law.” I did,” he explained.
“By September, the National Assembly told us to know what kind of business each individual deals with and to move it to a safe place,” he explained. “I said that after coming to a conclusion quickly in a short time.”
According to the Special Money Act, cryptocurrency exchanges must report virtual asset business operators to the financial authorities by September 24th. To this end, requirements such as information security management system (ISMS) certification and real name verification deposit/withdrawal account must be met. Accordingly, it is predicted that only four major exchanges will remain, including Upbit, Bithumb, Coinone, and Corbit that have all these procedures.
In addition, Chairman Eun said, “In the case of (cryptocurrency-related) fraud, I heard that the Financial Services Commission has prosecuted more than 200 cases in 3 years (swords and wonders). “It’s a story that’s a little (from reality) to be put on it.”
However, Chairman Eun emphasized again that it is not a matter of responsibility for price fluctuations. Chairman Eun emphasized, “What must be clear is that price fluctuations are not subject to protection,” and emphasized that “I was the same, and investors also talked about it.”
Chairman Eun said that it had achieved consensus with the government and the ruling party on the easing of the LTV (housing mortgage loan ratio) for young homeless people. Chairman Eun said, “We discussed within the FSC and the government, and there is no big difference in the content,” he said. “Even though I was beaten, there was no big disagreement about youth LTV.”
Inside and outside the financial and political circles, a plan to increase the preferential level of LTV for youth and homeless people from the current 10%p to 20%p is becoming prevalent. Currently, in the case of speculative and overheated areas such as Seoul, LTV is limited to 40%, but for homeless householders, LTV is mitigated by 10%p, allowing up to 50%. However, preferential treatment is only possible if the house price is less than 600 million won and the combined annual income of the couple is 80 million won or less (90 million won or less for the first purchaser in life).
If the LTV is further relaxed by 10%p, up to 60% of LTV will be given preferential treatment in the speculative and overheated areas. LTV (Loan to Value ratio) is the ratio of the value of an asset that is recognized when borrowing money as collateral for a home. If LTV increases from 50% to 60% when buying a 600 million house, the loanable amount will increase from 300 million won to 360 million won. Some politicians even talked about allowing up to 90% of LTV for end users of young adults, but it is said that the reality is poor.
Regarding the personnel of the Financial Supervisory Service, which has been acting as an agency for about 20 days since the retirement of Director Yoon Seok-heon, he said, “I am trying to have a good person,” and “Please wait because there are procedures.
