South Korean Financial Regulator Settles the Negative Position for Crypto and ICOs

South Korea is always of the opinion that it holds closed doors when it comes to cryptocurrency and ICOs. This fact was just reaffirmed by Choi Jong-Koo, chairman of Korea’s Financial Services Commission spoke at a recent audit session hosted at the National Assembly. The reports from Business Korea say that he affirmed that South Korea has a negative stand when it comes to ICOs and digital currencies as well.

If we look at the timeline of series unfolding since last year in South Korea and cryptocurrency, we could see that the ban on ICOs started last year in September. The explanation they gave behind doing so what that fundraising of ICOs is in a way almost a gamble and they couldn’t allow the practice for the same.

This year in August, the lawmakers of Korea, as well as the government official participants, regarded the cryptocurrency issue again where they demanded to dismantle the ban from country’s ban on Initial Coin Offerings. However, to do so, the lawmakers agreed on the need of developing a policy first, before initiating the allowance of ICOs in South Korea.

Regarding the current stance of the country when it comes to crypto and blockchain, Choi represented the difference between the two platforms. Moreover, they denied any claims of reenacting the laws of crypto and ICO as of now and are not planning to do so for the future either. Reportedly Choi says that crypto and blockchain platforms are distinguished and they are aware of the vast potential of blockchain and that it shouldn’t equate with the crypto business of the country.

South Korean Financial Regulator

The negative views on the ICOs remain the same as Choi speaks at the audit commission held at National Assembly. He says, “Many people say the Korean government should allow ICOs, but ICOs bring uncertainty, and the damage they can cause is too serious and obvious. For these reasons, many foreign countries ban ICOs or are conservative towards them.”

However addressing the critique matter between banks and crypto exchanges, Choi sympathized with the exchanges. He urges the exchange companies to stay firm on their demand of wanting bank accounts and banking services to them and persuade if necessary.

But if we are to believe some of the officials of the country, they believe that the government of South Korea would announce its final decision on ICOs probably by November this year. That would create a legal and lawful regulation too if they decide to reenact the system or they would reaffirm the ban as a result.

The reports were confirmed by Hong Nam-ki, Chief of Office for Government Policy Coordination. He said that the officials of government would soon announce their final position on the ICO’s through discussions and from results of a government survey.

Margi Brambhatt

Margi has done diploma in Mass Media & Journalism. She has previously worked as a freelance reporter for various famous Finance media platforms. When she is not writing or editing others reports, you can find her engulfed in reading books. She believes in reporting content which is 100% well researched. You can also mail her at [email protected] to discuss anything related to her reports.

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