Crypto Frontline

Could South Korea Remove Its ICO Ban in November?

Could South Korea Remove Its ICO Ban in November?

Could South Korea Remove Its ICO Ban in November?
October 16
07:32 2018

September 2017 had been a huge blow for ICOs, since South Korea, one of the biggest markets for cryptocurrencies, had banned them, forcing blockchain-based start-ups to move their headquarters outside of the country. Even though more than a year had passed, the officials did not manage to come out with a regulatory framework and the ban is still in play.

FSS conducts survey

Currently, the Financial Supervisory Service (FSS), one of the main financial regulators in the country, is conducting a survey on blockchain-based companies. According to The Korea Economic Daily, the survey requires these companies to give details about the ICO projects they have conducted or will conduct, and, to justify the issuance of tokens and their distribution methodology.

The financial agency had also made the survey optional since the government just wants to have a clearer picture on ICO projects and does not want to impose sanctions on them. Although no actual measure had been taken, this shows a positive change in the government’s approach to ICOs.

Final call postponed until November

Hong Nam-Ki, the Chief of the Office for Government Policy Coordination, had confirmed last week that the survey had already been sent to the companies and the final stance of the government regarding ICOs will be revealed in November this year.

In a period when the ICO activity slows down sharply, good news related to ICOs from South Korea will be more than welcomed and it will certainly contribute to the boost of short-term confidence.

The FSS, which oversees cryptocurrency policy and anti-money laundering measures, had already held talks with companies from the industry and Hong Nam-Ki had also stated that despite the ICO ban, companies are still launching ICO projects or plan to do so later.

There had also been comments from Choi Jong-Ku, the Chairman of the FSC, the other financial regulator in South Korea, which emphasized that the government understands the potential of the blockchain technology and, he made clear that a difference line must be drawn between blockchain and cryptocurrencies.

Until the final call on ICOs, which is expected to come in November, the ICO ban will remain in play. It is still a positive sign from the government to see it wants to find out opinions from the market. Maybe we will see a change in the official stance, given the fact that blockchain-based companies still manage to conduct ICOs despite the ban imposed by the government.