Financial Services Commission Maintains Its Negative View Towards ICO

Oct 12, 2018

“There is no reason to treat companies that deal with cryptocurrencies and blockchain industry equally.” said Chairman Choi Jong-koo of Financial Services Commission (FSC) while maintaining negative view towards cryptocurrency market.
“South Korean Government also acknowledges promise of blockchain industry.” said Chairman Choi in response to a question from Jeon Jae-soo, who is a member of Democratic Party of Korea, at an audit of government offices. “However, it believes that it does not need to look at companies that deal with cryptocurrencies and blockchain industry equally.”
“Although many people urge South Korean Government to allow ICO (Initial Coin Offering), uncertainty that is brought by ICO is still serious and clear.” said Chairman Choi. “Foreign countries are also taking conservative approach towards ICO or prohibiting it from the start.”

Chairman Choi Jong-koo of Financial Services Commission <Chairman Choi Jong-koo of Financial Services Commission>

Chairman Choi maintained his position that it will be difficult to allow ICO from a standpoint of protection of consumers.
“Cryptocurrency exchanges must persuade commercial banks.” said Chairman Choi regarding a criticism that commercial banks are not opening real name accounts to certain cryptocurrency exchanges.
CEO Eo Joon-seon of COINPLUS also attended this audit. “Although we already took care of every request made by FSC and commercial banks, we are currently carrying out our businesses without transactions involving Won.” said CEO Eo. “We are spending a lot of our money as we do not have a real name account.”
“We have been waiting for 6 months.” said CEO Eo. “Although we were told by a bank that it would give us a real name account, we have yet to receive any response from it after FSC announced its third guideline back in June.”
Staff Reporter Gil, Jaeshik | osolgil@etnews.com

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