“ICO (Initial Coin Offering) market will eventually surpass IPO (Initial Public Offering) market in the future. Although such example is occurring throughout the world, South Korea is ultimately prohibiting ICO and there is no reason behind it. South Korean Government is basically enforcing regulations just because it does not want to go through headaches. It is draining our national wealth.”
Chairman Shin Geun-young of Blockchain Startup Association strongly criticized South Korean Government’s regulations on cryptocurrency by calling it ‘administrative idea centered on convenience’.
He explained that ridiculous incidences are taking place as South Korean Government is pushing for regulations that are not even stated within South Korean laws.
“South Korean Government is prohibiting blockchain companies from opening bank accounts and wire transferring their money to foreign countries.” said Chairman Shin. “It even created a blacklist of blockchain companies and its financial authorities and prosecutors are enforcing blockchain companies regarding money laundering issue.”
Chairman Shin is stating that regulations must be prepared based on accurate laws and that South Korean Government is enforcing unclear regulations that are not benefiting blockchain companies.
“Blockchain industry is not an issue that can be solved from regulations from single country, but it is an issue that must need international cooperation.” said Chairman Shin. “Although South Korean Government should prepare channels where it can communicate with private companies, there are not any means of communication as it is taking everything positively.”
“Some government workers are abusing discretionary power and harassing blockchain companies.” said Chairman Shin. “Prime example is when some blockchain companies were notified that they could not open corporate accounts.” As a result, some companies are cleverly changing articles of association to open corporate accounts. He stated that South Korean Government must prevent people from viewing blockchain companies as potential criminals.
He announced that there is a possibility for South Korea, which only has 50 million people in population, to become a ‘worldwide industry’ and that South Korean Government and private companies must work together.
“Because blockchain industry does not involve financial industry only, South Korean Government must prepare ways of communication with different departments for private companies.” said Chairman Shin. “Issue of different associations being established all at once must be solved by any means necessary.”
He also stated future roles of Blockchain Startup Association.
“Small but strong companies in South Korea will help by preparing substantial supporting methods.” said Chairman Shin. “Not only Blockchain Startup Association will help with gathering developing funds, but it will also help with every area that is needed to prepare for ICO.”
Blockchain Startup Association is also going to prepare a network in October where global Mainnet companies can have various discussions with South Korean companies.
“It is time for South Korean Government and private companies to work together to develop a huge ecosystem for blockchain industry.” said Chairman Shin. “Legislative regulations must be eased first to have global cryptocurrency fund to start flowing into South Korea.”
Staff Reporter Gil, Jaeshik | osolgil@etnews.com