South Korea To Finalize Its Stand on ICOs by November, Says Official

14. Oct 2018 Posted by Akolkar B on News

Last year, South Korea introduced a blanket ban on Initial Coin Offerings (ICOs) owing to several fraudulent schemes coming to limelight. However, a lot has been changed in the regulatory environment of the country since then. Since the beginning of 2018, multiple reports suggest the South Korea could likely reinstate ICO operations in its crypto market.

A top-level government official was recently cited stating that South Korea will announce its official stand on ICOs by next month of November. During the recently held National Assembly's annual audit on government actions, chief of the office for Government Policy Coordination Hong Nam-ki said that regulators are reviewing this matter in recent months.

According to CoinDeskKorea, Jeon Haecheol, a lawmaker from the ruling Democratic Party, opined about lifting the existing ICO ban. Jon said: "If we waste time, the blockchain industry could face huge difficulties. We need to look at very realistic and specific ways to nurture the blockchain industry, and I think permitting ICOs is one of them.”

Responding to Jeon’s query, Hong said: "We are going to form the position of the government in November based on the results of the investigation at the end of October.” Hong also went to add that the country’s top market watchdog Financial Services Commission (FSC) is currently conducting survey on ICOs since September.

However, according to local Korean publication Yonhap, FSC chairman Choi Jong-ku sounded not very keen to lift the ICO ban. Choi said: “Although many people call for the government to allow initial coin offerings, there are still uncertainties related to such a move as well as the possibility of serious fallouts.”

He further went to tell the lawmaker that the regulatory body, for now, will stick to the ongoing decision of blanket ban on the ICO fundraising method. By November next month, we expect for more regulatory clarity to emerge in this case.

However in August 2018, governor of South Korea’s Jeju Island Won Hee-ryong proposed that the central government should designate that province as a “special zone” for cryptocurrency and blockchain sector. If Won’s proposal is approved, he would go to legalise ICOs in the region.

“Entrepreneurs looking to innovate should be allowed to raise funds through cryptocurrency,” he stated.