South Korean financial control body investigates Blockchain startups on ICO

The investigation causes nervousness among some of the companies.

South Korea's financial control body is contacting Blockchain national startups as part of an investigation into Initial Cryptocurrency Offers (ICO).

According to a report by CoinDesk Korea, the investigation is causing nervousness among the companies on whether, in the end, it could give rise to some type of sanctions if it is considered that the companies have infringed the rules on the sales of tokens. Currently, ICOs are technically not allowed, since the token-based financing method was banned last September.

As revealed in a questionnaire from the Financial Services Commission, obtained by CoinDesk Korea today, the Financial Supervision Service (FSS) has already sent letters to several companies asking them to cooperate with the investigation. The FSS is a regulator that supervises financial institutions under the supervision of the FSC.

The questionnaire consists of 52 questions, which require specific information, such as the status of the shareholders, the countries where an ICO is in progress, the number of tokens assigned to national residents in any ICO, and the reasons for carrying out an ICO in abroad.

However, instead of an effort to curb the sales of tokens, an official of the FSS told CoinDesk Korea that it is getting closer "to understand what the contents of the contract, business plan and white paper are, if it has any "

He continued saying: "It is not for sanctions. This is to capture the current situation ... It is important to note the ability of investors to inform investments and provide a system for ICOs. "

Regarding a possible regulatory framework for ICOs, the official said: "We are trying to discover the real situation because we can not simply ignore the problem since the ICOs are happening in foreign countries."

A lawyer who had advised a Blockchain company that recently completed an ICO said they were skeptical about the intentions behind the investigation, when CoinDesk Korea asked them. They also expressed concern that the investigation would reveal information about the company that "is not normally open to the general public."

Source: CoinDesk