Governor of the Bank of Korea: "Margin trading in the cryptocurrency market threatens the financial system" – Bits Media

Bank of Korea Governor Lee Joo Yeol speaks negatively about leveraged trading, available on cryptocurrency exchanges. According to him, Such margin trade threatens the banking and financial system.

Speaking at a press conference Lee Ju Yol (Lee Ju-yeol) stated, what “An excessive number of transactions with cryptocurrencies using borrowed funds subjected households to the risk of financial damage, especially given the instability of cryptocurrency courses ".

“We expect, that an increase in the volume of marginal trade with cryptocurrencies will have a negative impact on the financial system ", - emphasized the managing bank of Korea.

Lee Ju Yol called on more closely to track the marginal cryptocurrency trading financial transactions to Korean banks and other financial institutions. If the residents of the country will use too many borrowed funds, This will cause damage to the banking system.

Earlier, the Central Bank of Korea has already reported plans to track cryptocurrency transactions through bank accounts. Currently, debts of households in South Korea are estimated at $1.5 trillion, Moreover, the indicator has grown by 2% for the first quarter of this year.

Recall, that now South Korea rightfully takes a leading position in terms of cryptocurrency trade - for example, 23% Students in the country bought digital currencies. Therefore, local regulators pay more and more attention to this industry, and introduce new requirements for cryptocurrency exchanges.