South Korean Financial Regulator Reaffirms Negative Stance on ICOs and Crypto

A high Korean monetary regulator has reiterated his adverse place on ICOs and digital currencies, although he doesn’t deny the potential of blockchain.

The chairman of Korea’s Financial Services Commission Choi Jong-koo has reaffirmed his adverse place on digital currencies and Initial Coin Offerings (ICOs), Business Korea reported Oct. 11. Choi spoke at a parliamentary audit session of the fee held on the National Assembly.

South Korea prohibited ICOs in September final yr, stating that such a kind of fundraising is “virtually of venture.” This August, Korean lawmakers, together with individuals from authorities ministries, returned to the cryptocurrency situation, specializing in repealing the nation’s initial coin offering ban. Lawmakers agreed on the necessity to develop a associated coverage earlier than carrying a decision on initial coin offering reallowance.

At the current session, Choi reportedly mentioned that “the federal government doesn’t deny the potential of the blockchain trade,” whereas noting that it “mustn’t equate the cryptocurrency trading enterprise with the blockchain trade.” Choi mentioned:

“Many individuals say the Korean authorities ought to permit ICOs, however ICOs convey uncertainty and the injury they will trigger is just too critical and apparent. For these causes, many overseas nations ban ICOs or are conservative in direction of them.”

Choi additionally addressed criticism of business banks that refused service to crypto exchanges, stating that “exchanges ought to be capable of persuade banks to situation financial institution accounts to them.”

Other officers have mentioned that the South Korean authorities is “seemingly” to announce its official place on ICOs in November. The Chief of the Office for Government Policy Coordination Hong Nam-ki mentioned that the federal government will announce its place as soon as it finalizes its dialogue and receives the outcomes of a authorities survey.

Hong instructed Korean enterprise publication the Investor that the federal government launched a survey of blockchain corporations to assemble their views on the present authorized framework.

In September, South Korean cupboard ministers agreed to exclude all sale and brokerage of digital belongings primarily based on blockchain know-how from enterprise enterprise classification. The transfer was reportedly taken so as to “strengthen the cooperation of associated establishments” and to guard residents from the “unlawful actions” associated to the digital belongings enterprise.

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