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South Korean Regulators Discuss Proposals for ICO Legislation  - korea ico 1068x1068 - South Korean Regulators Discuss Proposals for ICO Legislation

Regulation

lawmakers are increasingly pushing for the regulation of initial coin offerings (ICOs) with multiple bills currently pending at the National Assembly. This includes a proposed amendment to the Electronic Financial Transactions Act. Meanwhile, the Blockchain Association has also come up with its own set of guidelines for crypto exchanges and ICOs.

Also read: 160 Crypto Exchanges Seek to Enter Japanese Market, Regulator Reveals

Five Crypto-Related Bills

South Korean Regulators Discuss Proposals for ICO Legislation  - korea flag 300x202 - South Korean Regulators Discuss Proposals for ICO LegislationIt has been about a year since initial coin offerings (ICOs) were banned in Korea, but the government has yet to introduce a set of guidelines for them.

There are more than five crypto-related bills pending in the National Assembly, Chosun wrote on Friday. In addition, lawmaker Park Yong-jin of the Democratic Party has proposed an amendment to the Electronic Financial Transactions Act, which would regulate cryptocurrencies and initial coin offerings, the publication added.

South Korean Regulators Discuss Proposals for ICO Legislation  - ico 300x185 - South Korean Regulators Discuss Proposals for ICO LegislationRepresentative Ha Tae-kyung said last that ten lawmakers who worked on this bill are pushing for the government to lift the ban on ICOs. The bill proposes definitions of crypto-related businesses such as trading, brokerage, and management.

Furthermore, issuers must ensure that their tokens adhere to certain standards and obtain approval from the Financial Services Commission (FSC) before launching ICOs, Asia Economy TV explained. Chosun added that with the FSC being part of the process, it will “strengthen the stability and credibility” of the crypto industry.

Looking Abroad

South Korean Regulators Discuss Proposals for ICO Legislation  - fsc 300x261 - South Korean Regulators Discuss Proposals for ICO LegislationAt a National Assembly meeting on Tuesday, the FSC was questioned about its ICO policy.

“Min Byung-doo, a Democratic Party member asked [the FSC about] the possibility of a change in the government’s policy on the ICO ban,” the Korea Economic Daily reported. He explained that a number of other countries such as the U.S., Switzerland, and Singapore have embraced ICOs.

Responding to Min’s question, FSC Chairman Choi Jong-ku emphasized that “The current policy of banning ICOs has not changed,” adding:

We are investigating the side effects of initial coin offerings (ICOs) from cases in overseas countries.

After token sales were banned in last year, local companies have been fulfilling their needs abroad in countries which allow ICOs, such as Singapore and Switzerland.

Self-Regulatory Plans

South Korean Regulators Discuss Proposals for ICO Legislation  - crypto 300x201 - South Korean Regulators Discuss Proposals for ICO LegislationThe Korean Blockchain Association unveiled its self-regulatory guidelines for crypto exchanges and ICOs at a blockchain event in Seoul on Tuesday, Asia Economy Daily reported. The association has been trying to enforce self-regulation on its members that are crypto exchanges.

The association’s chairman, Chin Dae-je, detailed that an ICO will be permitted after the group has examined the feasibility of the project by reviewing its whitepaper, the publication conveyed. The whitepaper must include information such as project name, services, investors, technology sources, schedules, and investment risks. In addition, the token issuer must collect “only transparent funds” from identified investors.

Also in the guidelines is an exchange registration system, a capital requirement of more than 2 won (~$1.77 million), listing criteria, fee disclosure requirements, a complaint management system, and anti-money laundering (AML) requirements.

Do you think South Korea will regulate ICOs soon? Let us know in the comments section below.


Images courtesy of Shutterstock and the FSC.


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