South Korea’s blockchain industry is getting excited about a rumor that will ease a regulation that completely prohibits any ICO (Initial Coin Offering). While cryptocurrency industry believes that South Korean Government is giving off signs that it will turn around its policy on ICO, financial authorities are continuously showing ambiguous stance towards ICO.
According to industries, a rumor regarding approval of ICO in November is spreading throughout blockchain and cryptocurrency markets. This rumor has that Financial Services Commission (FSC) will present a framework in September that will allow ICO within bounds of South Korean laws and present detailed guidelines at the end of November.
“Everyone is saying that FSC will approve ICOs that satisfy standards of IPO at the end of November after FSC performs inspections of government offices and present relevant guidelines that will treat cryptocurrency exchanges just like stock firms.” said a representative for an industry. “This rumor is also spreading through South Korea’s National Assembly and some companies are preparing for ICO sometime near the 20th of November.”
“We were able to sense such rumor even from blockchain-related seminars that were held earlier this year.” said a representative for a different industry. “Unlike last year, financial authorities are not mentioning about ‘complete prohibition of ICO’ this year.”

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Industries believe that unclear stance by financial authorities are fueling such scenario.
Currently, there are no laws that clearly ban ICO. However, South Korean Government regulates it as a type of fund-raising business without permission and revise Act on the Regulation of Fund-Raising Business without Permission.
“We are allowing ICOs if they follow procedures for issuance of securities stated by Capital Market Act.” said a representative for FSC. “However, because this is not ICO strictly speaking, one can practically see it as prohibition of ICO.” FSC is saying that it will not be a problem when cryptocurrencies are issued or blockchain platforms are developed through funds obtained through procedures for issuance of securities.
Even so, FSC drew a line to the rumor by saying that it is groundless.
“Even South Korean Government has yet to prepare any clear definition on cryptocurrency and ICO.” said a representative for Blockchain Association. “South Korean Government must come up with laws that either ban or allow ICO and establish a clear position towards ICO.”
Staff Reporter Ham, Jihyun | goham@etnews.com