Government of South Korea To Decide On Cryptocurrency ICO Legalization In November [Crypto Regulations]

An official of South Korea has revealed the plans of the government to announce its official stance on Crypto ICOs in November.

According to The Investor, Chief of the Office for Government Policy Coordination, Hong Nam-Ki, in a response to a question raised on the stance of the government concerning ICOs said that: “We have had several discussions (on ICOs). Once the survey results are in by end-October, we plan to finalize the government’s stance.”

FSS commenced a study in September, including itself among companies disregarding the ban and conducting or set to issue an ICO in the country.

Regarding ICOs, various reports from South Korea reveals differences in government opinion. Choi Jong-Ku, Financial Services Commission (FSC) Chairman, speaking at the National Assembly Audit meeting, stressed the initial ban on ICOs. He stressed the stance of the commission to continue the ban on crypto fundraising activities and exchanges. “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.”

Meanwhile, National Assembly member, Min Seong-Woo, is calling for ICOs to be legalized. He also called for robust regulations, in order to prevent fraud, money laundering and speculation.

Current cryptocurrency regulatory paradigm in South Korea
Currently, South Korea has a ban placed on Initial Coin Offerings (ICOs). Despite the ban, an official statement is yet to be released by the country regarding cryptocurrency trading and exchanges. All through 2018, several reports have surfaced regarding drafted policies tailored towards regulating the cryptocurrency space.

Director of KFIU (Korea Financial Intelligence Unit) has suggested for cryptocurrency exchanges stricter regulations, suggesting the regulation of exchanges similarly to commercial banks.

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