The South Korean authorities is predicted to announce its place on preliminary coin choices in November, in accordance to a high-ranking official. The determination will comply with the result of the survey which the nation’s Financial Supervisory Service lately despatched out to home blockchain corporations.
ICO Stance Expected in November
Hong Nam-ki, Chief of the Office for Government Policy Coordination, conveyed throughout a parliamentary audit on Thursday that “The Korean government is likely to announce its stance on the much–disputed status of initial coin offerings [ICOs] in November,” the Investor reported.
He defined that a survey on ICOs has been despatched to native blockchain corporations by the nation’s Financial Supervisory Service (FSS). The FSS is liable for setting some insurance policies on cryptocurrencies together with anti-money laundering measures. The purpose of the survey is “to gather their [survey recipients] views on the current legal framework” for ICOs, the publication added. “We did the survey as some companies are conducting or preparing for ICOs despite the ban here,” Hong clarified and was additional quoted saying:
We have had a number of discussions (on ICOs)…Once the survey outcomes are in by end-October, we plan to finalize the federal government’s stance.
Money Today additionally quoted him reaffirming, “I intend to form a government position on ICOs next month.”
The South Korean authorities banned all types of ICOs in September final yr however has but to introduce any regulation governing them. This has brought on quite a lot of Korean blockchain corporations to launch their tokens overseas, offering the chance for home buyers to proceed to make investments in ICOs.
Korean Government’s ICO Survey
The ICO survey despatched by the FSS has troubled companies that acquired it, in accordance to native media. Questions in the survey concern any ICO tasks corporations could also be concerned with or are planning to interact in, together with causes to problem tokens and their strategies of distribution, the Korea Economic Daily reported.
While the FSS says that the survey shouldn’t be obligatory and that it solely seeks “to understand the exact situation of the industry, not for sanctions,” corporations are reluctant to disclose sure info since ICOs are presently banned in the nation, the publication famous. An official of an organization that acquired the survey advised the information outlet:
We have determined [that it’s] our inner coverage to reply to [the survey due to] the considerations that it might be disadvantageous to be listed on the [government’s] blacklist whether it is declined.
FSC’s Current ICO Stance
Meanwhile, the Financial Services Commission (FSC), South Korea’s prime monetary regulator, has reaffirmed its stance on ICOs in the meanwhile.
“The government does not deny the promise of the blockchain industry,” FSC Chairman Choi Jong-ku was quoted by Yonhap saying on Thursday. However, “I do not think it is necessary to equate the virtual currency business with the blockchain industry,” he stated, elaborating:
Many individuals say ICOs ought to be allowed, however ICOs’ uncertainty stays, and injury is just too critical and apparent.
Choi additionally emphasised the necessity for extra crypto exchanges to use the real-name system that the federal government carried out in January. The regulator goals to convert all crypto buying and selling accounts to real-name ones. However, banks have solely been offering the real-name conversion service to the nation’s 4 prime crypto exchanges: Upbit, Bithumb, Coinone, and Korbit. All different exchanges proceed to use their company accounts which the regulator says are susceptible to cash laundering.
“We have to convince the banks,” Choi asserted, recognizing that at present “commercial banks do not give real-name accounts to some virtual currency exchanges.”
What do you assume the Korean authorities will announce in November? Let us know in the feedback part under.
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