ICO Legalization Fate in South Korea Will See Judgement Ruling by Government In November
ICOs Fate In South Korea To Be Decided By Government In November
It has been reported that regulators in South Korea have been reviewing matter related to initial coin offerings (ICOs) for some months, and the result of the investigation will initiate the decision which the government of the country will be taking on the matter by November.
Disclosing the update to lawmakers at the National Assembly’s annual audit on government actions, the head of the office for government policy coordination, Hong Nam-ki said by November, the South Korean government will then decide if it will again allow ICO in the country or not.
Hong said the Financial Services Commission (FSC) which is also known as the South Korea finance watchdog has been on the ICOs survey since last two months, and by the end of October, the result of the investigation should be out.
“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 added.
A legislator from the presiding government party, Jeon Haecheol who raised questions on the permission of ICO in the country believes the current embargo placed on ICOs should soon be lifted to enhance blockchain development in the country.
“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,” Jeon questioned.
According to a news report from Yonhap, the chairman of the FSC, Choi Jong-gu, contrary to the opinion of the lawmaker, believes otherwise based on his own sentiment.
“Many people say ICOs should be allowed, but … uncertainty remains, and the damage is too serious and obvious,” Yonhap, while raising concern against granting ICOs freedom in the country said.
In parity to a move made by the Chinese government, the FSC, in September 2017, issued a sanction on domestic ICOs. Hong reported that despite the ban, some crypto projects registered their businesses outside the country to be able to sell tokens to domestic residents.
After the implementation of the ban, some lawmakers in the National Assembly of the country raised concerns over the sanction, calling for its removal around May 2018.
It was also reported last month that the FSC, with the use of questionnaire, has begun investigating token sales.
In another report, Hong noted that despite clamping down on ICO in the country, the South Korean government has earmarked 34 billion won ($30 million) for support on the development of blockchain technology in coming years.
With this, it is clear that the government of the country is not against the technology but aims to control its activities to prevent fraudulent actions.