The Ongoing Cryptocurrency Conundrum
In a world where digital currencies seem to be popping up like daisies after the rain, South Korea finds itself in a bit of a pickle. At a recent parliamentary audit session, Chairman of the Financial Services Commission, Choi Jong-koo, reiterated his skeptical stance regarding digital currencies and Initial Coin Offerings (ICOs). Quoted in Business Korea on October 11, Choi’s comments suggest that not all roses come with a sweet fragrance, especially in the crypto garden.
Regulatory Ripple Effects
Last September, ICOs were effectively shown the door in South Korea, with prohibitive regulations labeling them as “almost a gamble.” It seems like a classic case of “once bitten, twice shy.” But hold onto your wallets—this August, some lawmakers have latched onto the possibility of revisiting the ICO prohibition, agreeing that a comprehensive policy framework should precede any potential thawing of the current restrictions.
Blockchains vs. Cryptos: Not All That Glitters
Choi, perhaps with a wise old owl’s perspective, emphasized the distinction between the blockchain industry and cryptocurrency trading. He opined that while the blockchain technology might hold proverbial gold dust, the trading of cryptocurrencies is a different beast altogether. According to him, “ICOs bring uncertainty and the damage they can cause is too serious and obvious.” Despite advocacy for a more lenient approach, Choi asserts that prudence must prevail.
The Banking Blockchain Blues
Choi also took a jab at commercial banks, pointing out their reluctance to serve cryptocurrency exchanges. His advice? “Exchanges should be able to persuade banks to issue bank accounts to them.” Now that’s a polite way of saying, “go schmooze your banker, buddy!” Meanwhile, the saga continues as the South Korean government gears up to release an official decree on ICOs this November.
The Road Ahead for Blockchain Policies
Further complicating matters, Chief of the Office for Government Policy Coordination, Hong Nam-ki, mentioned plans for a comprehensive survey targeting blockchain companies. This survey aims to gather insights on the current legal landscape and might steer the government’s course amidst fluctuating tides in crypto policy. In an unexpected twist, South Korean cabinet ministers recently agreed to exclude the sale and brokerage of blockchain-based digital assets from venture business classification in a bid to enhance inter-agency cooperation and curb illicit activities.
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