Financial Supervisory service of South Korea (FSS) at the briefing in the fields of IT and fintech announced plans to support the development of blockchain technology. The community in this regard, hopes for a quick lifting of the ban on the holding of ICO in the country.
FSS was talking about the introduction of blockchain technology in the financial industry, participation in the global blockchain consortia, the analysis of cases of DLT solutions and methods of their promotion. The regulator also stressed the need for the establishment of the Advisory Committee of external experts.
Government authorities of the country previously and constantly stated that they are interested in promoting blockchain technology. For example, the Ministry of science and information and communication technology has provided this year’s budget of about $4 million to support the existing blockchain projects.
But market participants on the background of the government’s plans to promote the DLT-technology heighten the demands to abolish the ban on ICO. They note that this form of crowdfunding is very effective for financing the blockchain projects, not to manage the state.
“The ICO is prohibited only in South Korea and China. The government declared that invests $13,15 million to the advancement of technology [blockchain]. But it’s a ridiculously small amount of money, given the fact that other countries strive to research and develop technology by attracting hundreds of millions via the ICO,” said Park sung-Joon (Park Sung-joon), head of the Research center blockchain technology at the University of Dongguk in Seoul.
Government critics of the controversial method of financing claim to lift the ban yet.
“Currently, the market of crypto-currency for trade is unstable. We need more time, because ICO and other controversial methods of fundraising will not be able to control the risks of price fluctuations,” — said the expert of the National legislative Assembly Won Jeong-Hyun (Won Jong-hyun).
Earlier, the FSS announced that it is investigating 20 companies for using unfair practices, exploiting the high popularity of cryptocurrency in the country.