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Korean regulator on ICOs: "Damage they can cause is too serious and obvious"

11 Oct, 2018
by Ryan Boltman
News
Korean regulator on ICOs: Damage they can cause is too serious and obvious

Business Korea has reported that the Korean top financial regulator has backed his negative stance towards cryptocurrencies and initial coin offerings stating "the damage they can cause is too serious and obvious"

Choi Jong-koo was answering question from lawmakers at a recent parliamentary inspection session that was held at the National Assembly earlier today.

Choi backed his criticism against cryptocurrency trading and initial coin offerings by stating that the government does not "deny the potential of the blockchain industry" however he felt the connection between blockchain, trading digital assets and participating in ICO's should not be placed in the same basket.

Due to the uncertainty and serious damage that ICO's can cause to investors was one of the main highlighted reasons why Choi does not believe in allowing them to operate in Korea. He also brought up the same reasoning for why many countries "ban ICOs or are conservative towards them."

Choi believes in protecting investors where projects fail to do so and ultimately, the negative approach to allowing free reign of initial coin offerings in Korea would protect cryptocurrency traders.

Choi also commented on commercial banks not giving out real name accounts to some cryptocurrency exchanges by stating "Exchanges should be able to persuade banks to issue bank accounts to them.”

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