The South Korean government has maintained its harsh stance towards Initial Coin Offerings (ICOs) and has shown no signs of reversing the ICO ban it issued last year September.
In a crucial meeting that held on Thursday, the chairman of South Korea’s primary markets regulator, Choi Jong-Ku, reiterated the government’s position on the ban on Initial Coin Offerings, maintaining the same reasons that caused the ban to be issued.
In a high-class meeting with lawmakers in the country, Jong-Ku, the present chairman of the Financial Services Commission (FSC) informed dignitaries present at the meeting of the decision to continue with its resolve to discourage fund-raising through initial coin offerings.
ICOs continue to be an efficient way of raising millions for investments, with fund as much as $2 million in raise very much feasible. The issue of frauds and scams, however, continue to plague the industry, while a nationwide ban affects legal outlets too. Jong-Ku noted emphatically that despite the continued clamor for the lift of the ban from even lawmakers and the cryptocurrency sector, FSC would continue to maintain its stance.
He explained that the imperfections and uncertainties that still linger heavily in the cryptocurrency industry are one of the reasons the regulator has not reviewed the issue.
Local news publication, Yonhap, reported the statement by the chairman as he gave his opinion:
“Although many people call for the government to allow initial coin offerings, there are still uncertainties related to such a move as well as the possibility of serious fallouts.”
Not long after an enforced a blanket ban on ICO’s in the China, that of South Korea followed suit in the last quarter of 2017. There were divided opinions over the ban and in the same quarter of 2017, discussions were already in progress on the possible overturn of the ban, or even subsequent legalization. Talks dragged till May 2018, but there wasn’t much progress as expected.
In an interesting development yet in South Korea, governor Won Hee-ryong of Jeju Island is desiring Jeju to become South Korea’s own blockchain Island like Switzerland’s Malta.
Won has revealed plans to propose the issue in a meeting with Korea’s Finance Minister; in a move that would see Jeju become an eco-friendly blockchain hub in South Korea. “Entrepreneurs looking to innovate should be allowed to raise funds through cryptocurrency,” he said.