The South Korean government is expected to announce its position on initial coin offerings in November, according to a high-ranking official. The decision will follow the outcome of the survey which the country’s Financial Supervisory Service recently sent out to domestic blockchain companies.
Also read: RBI Argues Supreme Court Should Not Interfere With Its Crypto Decision
ICO Stance Expected in November
Hong Nam-ki, Chief of the Office for Government Policy Coordination, conveyed during a parliamentary audit on Thursday that “The Korean government is likely to announce its stance on the much–disputed status of initial coin offerings [ICOs] in November,” the Investor reported.
He explained that a survey on ICOs has been sent to local blockchain companies by the country’s Financial Supervisory Service (FSS). The FSS is responsible for setting some policies on cryptocurrencies including anti-money laundering measures. The aim of the survey is “to gather their [survey recipients] views on the current legal framework” for ICOs, the publication added. “We did the survey as some companies are conducting or preparing for ICOs despite the ban here,” Hong clarified and was further quoted saying:
We have had several discussions (on ICOs)…Once the survey results are in by end-October, we plan to finalize the government’s stance.
Money Today also quoted him reaffirming, “I intend to form a government position on ICOs next month.”
The South Korean government banned all forms of ICOs in September last year but has yet to introduce any law governing them. This has caused a number of Korean blockchain companies to launch their tokens abroad, providing the opportunity for domestic investors to continue to invest in ICOs.
Korean Government’s ICO Survey
The ICO survey sent by the FSS has troubled businesses that received it, according to local media. Questions in the survey concern any ICO projects companies may be involved with or are planning to engage in, including reasons to issue tokens and their methods of distribution, the Korea Economic Daily reported.
While the FSS says that the survey is not mandatory and that it only seeks “to understand the exact situation of the industry, not for sanctions,” companies are reluctant to disclose certain information since ICOs are currently banned in the country, the publication noted. An official of a company that received the survey told the news outlet:
We have decided [that it’s] our internal policy to respond to [the survey due to] the concerns that it may be disadvantageous to be listed on the [government’s] blacklist if it is declined.
FSC’s Current ICO Stance
Meanwhile, the Financial Services Commission (FSC), South Korea’s top financial regulator, has reaffirmed its stance on ICOs for the time being.
FSC Chairman Choi Jong-ku.
“The government does not deny the promise of the blockchain industry,” FSC Chairman Choi Jong-ku was quoted by Yonhap saying on Thursday. However, “I do not think it is necessary to equate the virtual currency business with the blockchain industry,” he said, elaborating:
Many people say ICOs should be allowed, but ICOs’ uncertainty remains, and damage is too serious and obvious.
Choi also emphasized the need for more crypto exchanges to use the real-name system that the government implemented in January. The regulator aims to convert all crypto trading accounts to real-name ones. However, banks have only been providing the real-name conversion service to the country’s four top crypto exchanges: Upbit, Bithumb, Coinone, and Korbit. All other exchanges continue to use their corporate accounts which the regulator says are prone to money laundering.
“We have to convince the banks,” Choi asserted, recognizing that currently “commercial banks do not give real-name accounts to some virtual currency exchanges.”
What do you think the Korean government will announce in November? Let us know in the comments section below.
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The Financial Action Task Force (FATF) said it is getting closer to the establishment of a global set of anti-money laundering (AML) standards for cryptocurrencies, Financial Times reported September 19.The FATF is an international organization established in 1989 at the initiative of the G7 in order to develop policies and standards to fight money laundering. The agency’s scope of activities further expanded to combat terrorism financing. The FATF currently comprises 35 member jurisdictions and 2 regional organizations.The agency’s president Marshall Billingslea reportedly said that he expects the coordination of a series of standards that will close “gaps” in global AML standards at an FATF plenary in October.At that time, the FATF will purportedly discuss which existing standards should be adapted to digital currencies, as well as revise the assessment methods of how countries implement those standards. Billingslea also outlined the importance of developing standards that can be applied in a uniform manner.According to Billingslea, current AML standards and regimes for cryptocurrencies are “very much a patchwork quilt or spotty process,” which is “creating significant vulnerabilities for both national and international financial systems”. Billingslea, noted that despite the risks related to this kind of assets, digital currency as an asset class presents “a great opportunity.”In June, Cointelegraph reported that the FATF was planning to start developing binding rules for crypto exchanges later that month. The new rules would be an upgrade to the non-binding resolutions which were approved by the FATF in June 2015, considering whether existing guidelines on AML measures and reporting suspicious trading activity are still appropriate, and if they can be applied to new exchanges.Earlier this month, Belgian think-tank Bruegel also called for unified legislation on cryptocurrencies and more scrutiny on how they distributed to investors. Bruegel noted that the virtual nature of cryptocurrencies limits the development of regulations, stating that a piecemeal approach to crypto regulation leaves an opportunity for regulatory arbitrage. window.fbAsyncInit = function() FB.init( appId : ‘1922752334671725’, xfbml : true, version : ‘v2.9’ ); FB.AppEvents.logPageView(); ; (function(d, s, id) var js, fjs = d.getElementsByTagName(s); if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = “//connect.facebook.net/en_US/sdk.js”; fjs.parentNode.insertBefore(js, fjs); (document, ‘script’, ‘facebook-jssdk’)); !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.queue=;t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e); s.parentNode.insertBefore(t,s)(window,document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘1922752334671725’); fbq(‘track’, ‘PageView’);
The crypto automated trading machine (ATM) market will grow to $114.5 million by 2023, according a report published Sept. 4 on ResearchandMarkets.com.Researchers expect the cryptocurrency ATM market to grow from $16.3 million in 2018 to $144.5 million by 2023, citing a compound annual growth rate (CAGR) of 54.7 percent from 2018 to 2023.According to the study, significant growth during the forecast period will be from two-way ATMs, which let customers change digital currency into fiat and vise-versa using a single machine. The study says that the machines’ functionality is the key driver of two-way crypto ATMs’ popularity among users.The authors of the report highlight rapidly expanding capabilities in developed countries like the U.S., Germany, and Japan, and the increasing rate of crypto adoption as prime growth factors in the crypto ATM market.The North American crypto ATM market will purportedly hold the largest share of the crypto market by 2023. The presence of a large number of crypto ATM hardware and software providers, as well as a favorable investment environment will facilitate the dominant position of the U.S. in the market.At the same time, the study also identifies regulatory uncertainty, in addition to lack of awareness and technical understanding of cryptocurrencies as factors that can limit the growth of the crypto ATM market. Targeting mainstream adoption, Ontario-based Bitcoin (BTC) and Ethereum (ETH) ATM manufacturer LocalCoinATM installed a batch of ETH ATMs in three different locations in Canada, including Toronto, Brampton and Etobicoke in 2017. That year South Korean ATM manufacturer Hyosung officially integrated BTC into its international ATM models.While the crypto ATM market is projected to grow over the next five years, traditional ATM manufacturers consider digital currencies a threat to their business. In March, the world’s largest ATM operator Cardtronics pinpointed cryptocurrencies among the major risks to their business in an annual report. Consumer behavior analysis reportedly showed a significant shift in preferred payment methods, with more customers now choosing electronic forms of payment over traditional physical banknotes, leading to a decline in the use of ATMs. window.fbAsyncInit = function() FB.init( appId : ‘1922752334671725’, xfbml : true, version : ‘v2.9’ ); FB.AppEvents.logPageView(); ; (function(d, s, id) var js, fjs = d.getElementsByTagName(s); if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = “//connect.facebook.net/en_US/sdk.js”; fjs.parentNode.insertBefore(js, fjs); (document, ‘script’, ‘facebook-jssdk’)); !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.queue=;t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e); s.parentNode.insertBefore(t,s)(window,document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘1922752334671725’); fbq(‘track’, ‘PageView’);
Why is China banning cryptocurrency events? The country has put in place a ban on venues hosting all events related cryptocurrency in the Chaoyang district of Beijing.
China Banning Cryptocurrency Events; What’s Going On?
The report comes from the local news outlet, The Paper, which states that all public spaces have been prohibited from hosting cryptocurrency-related events. This includes shopping malls, office buildings, and hotels, where documents detailing the ban were issued.
Japanese media also reports that these new restrictions coincide with other measures targeting communication channels used by Chinese investors to gain access to ICOs.
Reasons given to justify the measures include the “protection of public property rights,” along with the upholding of “the security and stability of the financial system,” and the “prevention of money laundering.”
The China National Fintech Risk Rectification Office has identified 124 crypto trading platforms with overseas IP addresses and is intending to block access to their services, according to the Shanghai Securities Times. And recently, WeChat — a popular social media platform in the country — permanently blocked a number of crypto and blockchain-related accounts, including Jinse.com, News Flash, TokenClub, Coindaily, Huobi News and Huobi Research Institute, BiShiJie, deepchain, Wujie Blockchain, and Dapao.
Tell On Thy Neighbour
Members of the public have been encouraged to call out and publically denounce any violations of the ban. There are concerns that the ban could be extended to other districts in China.
>>Despite its Hack, Bithumb Made $35 Million in Q1 and Q2 of 2018
China Is Clamping Down
China banned Bitcoin-to-fiat exchanges along with ICOs in September 2017, and since then has been clamping down on crypto-related activity with greater authority and persistence. Further new measures are underway to bolster the so-called ‘clean-up’ of third-party crypto payment channels, according to CT Japan.
Officials from China’s Office for Special Remediation of Internet Financial Risks will reportedly interview third-party payment institutions and order them to cease any cryptocurrency-related dealings. In June, China declared victory over cryptocurrency trading by claiming that just one percent of Bitcoin transactions are made using local currency.
Featured Image: Deposit Photos/Alan
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On Friday morning, Bitcoin price continued its momentum from yesterday and broke through the $8,000 level, now trading at around $8,100. Over the past seven days, Bitcoin went up by as much as 25%, a signal that the cryptocurrency market may finally be recovering. As suggested by many experts, we could see Bitcoin set new highs in the future.
Further Upside For BTC/USD
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Plattsburgh required an 18-month suspension of a new commercial encryption operation, but it showed that it could be terminated sooner with a protection device installed.