Taking its cue from China, the Financial Supervisory Service (FSS) – the country’s markets watchdog under the FSC issued a ban on all ICOs in September 2017.
It wasn’t long before financial authorities began considering a reversal of the ban with a new bill drafted to legalize the launch of new ICOs and crypto tokens in South Korea.
The chairman of South Korea’s primary markets regulator has reaffirmed the authority’s initial coin offering (ICO) ban in a top-level meeting on Thursday.
Financial Services Commission (FSC) Chairman Choi Jong-Ku has told lawmakers during the annual government audit in a parliamentary meeting that the authority will stick to its policy of a sweeping blanket ban on fundraising through initial coin offerings.
The official stressed the regulator would continue to take this position despite calls from crypto industry, the startup sector and even some lawmakers urging the government to legalize ICOs under regulation.
During the meeting, FSC chairman Choi Jong-Ku was quoted by Korean publication Yonhap as stating:
“Although many people call for the government to allow initial coin offerings, there are still uncertainties related to such a move as well as the possibility of serious fallouts.”
If approved, the self-governing province would go on to legalize ICOs, governor Won confirmed.
“Entrepreneurs looking to innovate should be allowed to raise funds through cryptocurrency,” he stated, opening the shores of the largest island off the coast of the Korean peninsula to domestic startups and entrepreneurs from the mainland and its ban.