The South Korean government is expected to announce its position on initial mint offerings in November, according to a high-ranking official. The decision will consummate the outcome of the survey which the country’s Financial Supervisory Service recently sent out to servant blockchain companies.
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ICO Stance Expected in November
Hong Nam-ki, Chief of the Patronage for Government Policy Coordination, conveyed during a parliamentary audit on Thursday that “The Korean control is likely to announce its stance on the much–disputed status of initial invent offerings [ICOs] in November,” the Investor reported.
He explained that a review on ICOs has been sent to local blockchain companies by the country’s Economic Supervisory Service (FSS). The FSS is responsible for setting some policies on cryptocurrencies encompassing anti-money laundering measures. The aim of the survey is “to gather their [survey beneficiaries] views on the current legal framework” for ICOs, the publication added. “We did the investigation as some companies are conducting or preparing for ICOs despite the ban here,” Hong cleared and was further quoted saying:
We have had several discussions (on ICOs)…At a go the survey results are in by end-October, we plan to finalize the government’s stance.
Kale Today also quoted him reaffirming, “I intend to form a government assertion on ICOs next month.”
The South Korean government banned all be composed ofs of ICOs in September last year but has yet to introduce any law governing them. This has caused a tot up of Korean blockchain companies to launch their tokens abroad, accommodating the opportunity for domestic investors to continue to invest in ICOs.
Korean Control’s ICO Survey
The ICO survey sent by the FSS has troubled businesses that received it, concurring to local media. Questions in the survey concern any ICO projects companies may be confusing with or are planning to engage in, including reasons to issue tokens and their methods of allotment, the Korea Economic Daily reported.
While the FSS says that the scan is not mandatory and that it only seeks “to understand the exact situation of the trade, not for sanctions,” companies are reluctant to disclose certain information since ICOs are currently disallowed in the country, the publication noted. An official of a company that received the measurement told the news outlet:
We have decided [that it’s] our internal programme to respond to [the survey due to] the concerns that it may be disadvantageous to be listed on the [government’s] blacklist if it is decreased.
FSC’s Current ICO Stance
Meanwhile, the Financial Services Commission (FSC), South Korea’s top economic regulator, has reaffirmed its stance on ICOs for the time being.
FSC Chairman Choi Jong-ku.
“The ministry does not deny the promise of the blockchain industry,” FSC Chairman Choi Jong-ku was cited by Yonhap saying on Thursday. However, “I do not think it is necessary to equate the understood currency business with the blockchain industry,” he said, elaborating:
Multifarious people say ICOs should be allowed, but ICOs’ uncertainty remains, and injure is too serious and obvious.
Choi also emphasized the need for more crypto transfers to use the real-name system that the government implemented in January. The regulator sightings to convert all crypto trading accounts to real-name ones. However, banks demand only been providing the real-name conversion service to the country’s four top crypto the streets: Upbit, Bithumb, Coinone, and Korbit. All other exchanges continue to use their corporate accounts which the regulator sways are prone to money laundering.
“We have to convince the banks,” Choi asserted, recalling that currently “commercial banks do not give real-name accounts to some practical currency exchanges.”
What do you think the Korean government will hint at in November? Let us know in the comments section below.
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