The South Korean government has said it will give its stance on ICO in November after the conclusion of a study being undertaken by the Financial Supervisory Service. The survey sent out to blockchain companies in the country requires them to provide some information the government hopes to use to make a final decision. ICOs are still banned in the country forcing investors to look for opportunities in other places.
Blockchain Businesses To Wait Until November For South Korea’s Final ICO Stance
Although ICOs remain banned in South Korea, stakeholders in the Blockchain industry will now wait until next month to know whether they will be legalized. The Chief of the Office for Government Policy Coordination Hong Nam-ki confirmed this report on Thursday when speaking with the parliamentary audit team. The government is on a fact-finding mission to assist it to make an informed decision to caution the population against fraud.
Nam-ki said the country’s Financial Supervisory Services (FSS) has already sent the survey on the ICOs to the local Blockchain businesses. The government hopes to get views of these companies on the current legal framework for the sector. FSS is the agency that creates Crypto policies such as anti-money laundering measures.
Nam-ki also said they have been in talks with Blockchain companies on ICOs. He added that despite ICOs being banned in the country, there are companies already launching the ICO project or planning to get into one on a future date. Given that the government will have the results by the end of this month, Nam-ki confirmed that the final stance will be given in November.
How The Survey Is Being Conducted
FSS has been given the responsibility of conducting the survey on ICO projects. The Korea Economic Daily reported that the blockchain companies will be required to state the ICO projects they are currently involved with or planning to get into. Furthermore, they will be required to justify the issuance of tokens and the technique they use in their distribution.
The regulatory agency has said that Blockchain companies are free to decide whether they’ll take part in this survey. The government only wants to have a better understanding of ICOs and is in no way planning to impose sanctions on these companies. The news outlet has reported that Blockchain businesses are reluctant to respond to some of these questions since it is illegal to engage in ICOs in the country.
ICOs To Remain Banned Awaiting The November Decision
Choi Jong-Ku, the FSC Chairman has said that the South Korean government understands the potential of Blockchain technology. However, he said that it is not important to equate the technology with the Cryptocurrencies. He added that although ICOs can help startups to raise capital easily, they could also be used to the disadvantage of the locals. The government banned all ICOs in September last year and has not yet created any regulations. Most of the local-based companies wishing to launch ICOs prefer doing it outside the country.