An increasing number of countries look to regulate the cryptocurrency market. The South Korean government has said that their stance on ICOs will be released after a survey this November. This additional time taken to give its decision is due to the survey that is currently being conducted by the Financial Supervisory Service (FSS).
The survey is being sent to blockchain companies that currently exist in the country as a means for the government to gain information. This will allow them to come to a concrete decision. For now, the ICOs are still banned in the country. This is forced investors and users to look for alternative places to investment opportunities.
Even though ICOs are banned in the country, the stakeholders that are part of the Blockchain industry will need to wait a little longer to know the final decision by the government on grounds of legalization. Hong Nam-ki, Chief, Office for Government Policy Coordination confirmed this information on Thursday while speaking with the parliamentary audit team. The government is looking to take a well-informed decision on ICOs and blockchain companies. This will also help protect the country’s population against incidents of fraud.
Nam-ki further said that the Financial Supervisory Services (FSS) of South Korea has shared the survey with local blockchain businesses. The government wants additional opinions on the existing legal and regulatory framework for this particular sector. FSS is responsible for creating crypto-related policies including anti-money laundering measures.
The government is also hosting talks with existing blockchain companies on ICOs. Although there is an ongoing ban enforced in the country, multiple companies are planning to launch an ICO project. Nam-ki confirmed that the final decision will be given by November.
FSS has been given the responsibility of carrying out this survey on ICOs. As reported by the Korea Economic Daily, the blockchain companies will need to specify the ICO project that they are working with or are planning to invest in. They would be required to justify the tokenization and the methods used for the distribution of the same.
The FSS has made the survey participation optional for the blockchain companies. The government seeks to understand ICOs better and is not planning to impose sanctions on existing companies. Some blockchain businesses are skeptical when it comes to some of the survey questions. This is because currently, it is illegal to be involved with ICOs in South Korea.
Choi Jong-Ku, FSS Chairman said that the government of South Korea understands the potential of blockchain technology. He said that ICOs help startups raise capital for their platform, it has a high chance of being exploited. Ever since the ban on ICOs was enforced, the companies planning to launch their own ICOs are doing it outside of South Korea.