South Korea’s financial regulators are currently putting together a regulation that officially accepts initial coin offerings (ICOs) in an attempt to look more hospitable to the bigger financial technology sector.
ICOs will become legit says South Korea’s Regulators
This week, an online news agency detailed that financial regulators have been communicating to the South Korea Tax authority, Justice ministry and other significant government offices with regards to preparations to accept ICOs in South Korea with respect to all requirements being accepted, according to an emphasis pose by the anonymous source.
Increasingly, Initial Coin Offerings are becoming the most famous method to fund projects, and are a lot of times less exhaustive and cheap than their counterparts, initial public offerings which comprise of only legal practitioners to maneuver around obstacles. Additionally, ICOs have been under the microscope by critics worldwide, nevertheless, this is based on investors being victims of millions of cyber attacks worldwide.
The FSC’s Standpoint
The entity responsible for overseeing South Korea’s Financial Supervisory Service (FSS) is referred to as The Financial Service Commission (FSC), who plays a double role of being the country’s main financial regulatory body. Kang Young-soo, FSC’s Crypto regulator has not yet dedicated to ICO liberalization formally, explaining to the state’s national assembly that there are numerous rumors concerning the probability of accepting ICOs. A third-party standpoint has been accepted by the FSC in connection with the matter at hand, however, they cannot comment much officially now. In addition, they sighted that they are prepared to find ways to develop blockchain-related technologies and efficiently control virtual currency transactions. Nonetheless, they believe this is a distinct problem of its own.
In addition to the above, The Times noted that the financial regulators are planning to accept initial coin offerings (ICOs), “digital token-based fundraising rounds”, for local speculators to develop blockchain technology, as described by sources aware of the current situation. This will be a big spin for the virtual currency state, as state authorities in the fall of the previous year completely restricted ICOs for people residing in the country.
The Times also mentioned that in the event of this happenings, the officer in charge has not yet activated the ICO policy and has not mandated firms to give back ICO funds. Moreover, The Times revealed that they will allow domestic speculators to invest into foreign ICOs and virtual currency “operating within the country”.
Finally, according to NewsBitcoin.com “In business-oriented countries like South Korea, they understand outright prohibitions on mechanisms such as ICOs mean those startups and capital will move to friendlier climes, and thus starve the region of badly needed growth. Instead, more politicians are at least considering embracing innovation by folding them into existing regulatory structures.”