The South Korean watchdog wants the ICO prohibition to be lifted

Must Read

Spellfire would be listed on Huobi Primelist on January 27th

Spellfire, the first to produce touchable NFT cards, has announced that on January 27, 2022, it would...

Bithumb receives 90 million XRP coins from an XRP address

XRP has experienced various obstacles in the previous four weeks, including selling pressure, poor sentiment, and a...

ADB eyes use of blockchain for cross-border securities transactions in Asia Pacific

The Asian Development Bank on Wednesday said it launched a project to explore the possibility of directly...

South Korea’s financial authority prohibited all token sales in September 2017, during the height of the initial coin offering (ICO) craze, following China’s lead. Now, the regulator is urging the prohibition to be lifted and for the industry to be regulated.

According to a recent report, the Financial Services Commission (FSC) may be modifying its position on initial coin offerings (ICOs). Do Gyu-sang, the FSC’s vice chairman urged that the nation reconsider its strong attitude on ICOs and regulate them rather than impose a blanket ban.

Do was addressing before the Korean National Assembly’s Political Affairs Committee. His agency thinks ICOs should be included in the nation’s Capital Market Act, which controls the Korean securities market, he told the committee.

To do so, he said lawmakers, “We cannot delay the ICO any longer. (ICOs) must be included in the Capital Market Act. To do that, we need to revisit some provisions and look at the relationship with the (Virtual Industrial Rights Act) enactment or special law.”

Side view of businessman hands using abstract ICO initial coin offering interface. Bitcoin concept. 3D Rendering

If the prohibition is lifted, the watchdog feels that more severe standards for ICO issuers would be required to prevent fraudsters from manipulating investors. For example, before being authorized to fundraise, issuers will be obliged to declare any digital assets involved and the supporting technology, its sponsors, and other critical information to the regulator. They’ll also have to follow all other legal criteria that pertain to stock market listings.

After raising money from investors, the issuer must deposit all cash in a bank and document all activities in an accounting report.

As the FSC pushes for the removal of the restriction, the popularity of ICOs has waned, as has the amount of money collected. While they generated tens of billions in 2017 and 2018, the business was soiled by regulatory crackdowns and an increase in multimillion-dollar frauds, and it’s gone downhill since then. For example, ICO funding fell 95% year over year in 2019, from $7.8 billion to $371 million.

The new ideas are being debated in South Korea’s parliament, which also deals with the contentious issue of instituting a 20% digital currency tax.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Spellfire would be listed on Huobi Primelist on January 27th

Spellfire, the first to produce touchable NFT cards, has announced that on January 27, 2022, it would...

Bithumb receives 90 million XRP coins from an XRP address

XRP has experienced various obstacles in the previous four weeks, including selling pressure, poor sentiment, and a substantial increase in volatility. While...

ADB eyes use of blockchain for cross-border securities transactions in Asia Pacific

The Asian Development Bank on Wednesday said it launched a project to explore the possibility of directly connecting central banks and securities...

Cardano price analysis: ADA price curve takes an upturn to $1.66 as bullish support appears

The most recent Cardano price analysis is bullish as the market has turned favorable for buyers today. The price has now started to recover...

To the moon! Cathie Wood’s ARK Invest says Bitcoin will exceed $1M by 2030, as BTC approaches $38K

A lot of individuals and companies have made bullish predictions for Bitcoin and the heights its price could hit in the near...
- Advertisement -

More Articles Like This