Amid local investors' growing interest in cryptocurrencies despite erratic price fluctuations, acting Prime Minister and Finance Minister Hong Nam-ki has reiterated the government’s position that they are not financial assets eligible for regulatory protection. 

Hong made the remark in a press conference on Tuesday, adding crypto assets are not currencies and have no intrinsic value. They are not subject to regulation and the investors are not entitled to state protection, as they are not considered financial investment assets as defined under the capital market promotion act, he said.

The minister said the taxation on capital gains from cryptocurrencies will also begin next year as planned. 

Come January, the government will impose a 20 percent tax on the gains from virtual asset transactions.

Hong’s remarks followed similar messages by Financial Services Commission(FSC) Chairman Eun Sung-soo, who said the government cannot protect everyone who invested in cryptocurrencies.