Altcoin News, Business, Cryptocurrency News, Latest News, Legal, Regulation

South Korea Expected To Follow Japan’s Lead In Allowing Private ICOs Sale.

Recently on 26th Nov. this year, the Financial Services Agency [FSA] of Japan held an inside meeting to debate the possibility of permitting private ICOs [initial coin offering].

Nikkei according reported that the native monetary authorities are actively exploring the legalisation of ICOs for institutional investors and licensed investors, as long as they’re lawfully conducted among the boundaries of existing finacial laws.

Would South Korea Ever Follow Japan?

Following the report of Nikkei, on 2nd Dec., native media outlet JIJI Press reported that the FSA is on the point of revealing an official guideline on ICO regulations to speed up the method of making a vibrant ICO startup scheme within the country.

Kakao, the biggest web conglomerate in South Korea, recently established its blockchain arm in Japan to run a non-public token sale for a project referred as Clay.

A representative of Kakao said that the corporate has nearly secured $300 Mln in funding, during a private ICO, from its partners:

“Kakao has been securing strategic partners to assist improve and grow the world blockchain scheme by gaining new capital. It can be recognized as a non-public sale, however it’s not available for individual investors and is participated by institutions that are partnering with Kakao. Currently, it’s impossible to nail down precise numbers concerning the funding rounds, and therefore the company isn’t within the position to openly share which firms are connected within this initiative. Kakao need to first communicate with its partner firms first.”

Given the regulative allowance, provided to Kakao by native financial authorities, it’s attainable that the govt has began to enable corporations to conduct private token sales before the release of its regulative framework.

Throughout the past many years, Japan has not opposed the concept of corporations running private token sales by securing funds from institutional investors. The country’s main concern around cryptocurrencies has been the existence of privacy-focused assets like Zcash, Monero, and Dash, that the FSA describes as the “three siblings”

Based on the govt’s revived interest towards rising technologies and fintech that has cryptocurrencies and blockchain technology, the FSA’s call to probably permit ICOs wasn’t a revelation to native analysts and corporations.

With Kakao’s private sale was conducted in success and Line, the largest mobile messaging app in Japan, also launched its token earlier referred as LINK, the govt may begin to encourage large-scale firms to conduct private ICOs to compete against several other major crypto markets within Asia and Europe like North Korea, Singapore and Switzerland.

South Korea’s Current Stand

Already, in October, Min Byung-doo, the chairman of Korea’s National Policy Committee, requested the govt to initiate the method of legalizing ICOs by considering the success of ICOs ran by the Telegram, EOS etc.

At the time, he aforesaid that ICO has become a brand new trend and a wide used technique of fundraising which the govt cannot prohibit it while competing economies continue to adopt it.

Chairman Min further added:

“The govt. cannot dismiss ICO. It must permit firms to conduct ICO. ICO has become a brand new trend within the international market and it’s the responsibility and talent of the govt to embrace new technologies. We will see that the flow of investment is clearly dynamic compared to ICO and angel fundraising. The ICO has raised $1.7 Bln for Telegram and around $4 Bln for EOS, it’s expanding larger and greater.”

South Korea seems to follow Japan’s lead in cryptocurrency regulation throughout the last 48 months, like most countries within the G20. The most recent move by the FSA to legitimise private token sales could provide South Korea take-part during a similar initiative within the short-run.

Leave a Comment

Your email address will not be published. Required fields are marked *