The past week has seen a reversal in South Korea’s stance on initial coin offerings (ICO) in the country. The country’s Financial Services Commission (FSC) is planning to make regulations for bitcoin and other digital currencies. A senior agency official on 6th Dec 2017 revealed these plans.
Plan is to moderate ICOs
During a presentation at a public hearing at the National Assembly, FSC vice chairman Kim Yong-beom reiterated that the commission’s plan is to moderate its stance on ICOs and cryptocurrencies.
According to Korean Herald, Kim Yong-beom said:
“We are closely watching the recent developments in cryptocurrency trade…The government doesn’t consider cryprocurrencies as money or financial products. We will regulate bicoins to curtail money laundering and tax dodging.”
Professional Investors only for the ICO policy
Yong-beom has revealed that the commission may only allow professional investors to participate in companies’ and startups’ financing through cryptocurrencies.
Yong beom stated,
“Bitcoin is complicated in its technology and investment method. So considering its risks and technology expertise, it’s only right for professional investors to do an ICO, not regular citizens who are not informed of its technology and complicity.”
South Korean government is implementing regulations for bitcoin exchanges at the moment. Exchanges are to comply with consumer protection standards and KYC norms so as to operate within the country.
The US Securities and Exchange Commission decided to accept ICOs at the beginning of the year, this is certainly having a similar effect on South Koreas approach.
Will South Korean policy makers catch up with other markets around the world? Time will certainly tell.