Leveraged cryptocurrency trading by individuals in South Korea threatens the nation’s financial system, Bank of Korea Gov. Lee Ju-yeol said at a press conference cited by the Korea Herald. Given the price volatility of virtual assets, increased trading in such assets leaves Korea’s financial system subject to instability, Lee said.
“An excessive level of leveraged cryptocurrency trading puts households at risk of financial damages considering the instability of (cryptocurrency),” Lee told reporters. “We expect (the increasing amount of crypto trading) to have a negative impact on the financial system in any respect.”