The South Korean government is “likely” to announce its official position on Initial Coin Offerings (ICOs) in November.
“We have had several discussions (on ICOs),” said Hong Nam-ki, chief of the Office for Government Policy Coordination, during a parliamentary audit, when asked about government’s position on ICOs. “Once the survey results are in by end-October, we plan to finalize the government’s stance.”
Taking its cue from China, the Financial Supervisory Service (FSS) – the country’s markets watchdog under the FSC – issued a ban on all ICOs in September 2017.
(FSC) Chairman Choi Jong-Ku has told lawmakers during the annual government audit that the authority will stick to its policy of a sweeping blanket ban on fundraising through initial coin offerings.
Due to the uncertainty and serious damage that ICO’s can cause to investors was one of the main highlighted reasons why Choi does not believe in allowing them to operate in Korea.
Choi believes in protecting investors where projects fail to do so and ultimately, the negative approach to allowing free reign of initial coin offerings in Korea would protect cryptocurrency traders.