South Korea may revise the ban on initial coin offerings (ICOs) after the Financial Service Commission (FSC) approval and include token sales in the capital market law, Money Today reports.
The bill submitted by the Financial Services Commission to the National Assembly’s Political Affairs Committee on the 23rd of Nov is intended to prepare a regulatory policy based on ICO, and their listing on exchanges, while protecting investors.
Do Gyu-sang, vice chairman of the Financial Services Commission, appeared in the South Korea Political Affairs Committee on the 17th and said, “We cannot delay the ICO any longer.ICO must be included in the Capital Market Act. To do that, we need to revisit some terms and look at the relationship with the Virtual Industrial Rights Act to make ICO legal in-country.”
According to the draft submitted by the FSC, the qualification for issuance of new tokens will be limited to corporations. White paper or investment prospectus will also be legislated. The content of the white paper may be different for each type of coin, but it should include an introduction of participants, a detailed project description, virtual asset type, plan to use public funds, underlying technology, and risks related to project implementations.
The major wallets holding that coin, transaction risk (possibility of loss, etc.), fees, taxes, exchange listing, and any other important matters should also be included. In addition, a specific institution specializing in coin evaluation will perform a thorough coin evaluation appointed by FSC.
When starting any public offering, the issuer will disclose financial statements in accordance with the External Audit Act. Criminal penalties are also possible for violations of accounting standards. The public offering funds will be deposited in a bank, and the fund management plans and business plans will be periodically verified.
FSC introduced a ban on holding any form of ICO in the country in 2017. Also in October, the South Korean opposition resisted austere taxation on cryptocurrencies.
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