South Korean Financial Services Commission Chairman Choi Jong-koo has been a critic of initial coin offerings in the past. Judging from comments he made during a recent National Assembly audit session of his agency, he still views them as an unacceptable risk and a potential threat to investors.
In his remarks this week, Choi said:
"Many people say the Korean government should allow ICOs, but ICOs bring uncertainty and the damage they can cause is too serious and obvious. For these reasons, many foreign countries ban ICOs or are conservative towards them.”
Despite the renewed criticism of ICOs, Choi expressed openness to blockchain technology’s potential benefits, noting that “The government does not deny the potential of the blockchain industry.” However, he urged officials to differentiate between that technology and the “cryptocurrency trading business.”
According to Business Korea, Choi also addressed concerns that some cryptocurrency exchanges have faced difficulty obtaining bank services from the nation’s financial institutions. Choi reportedly said, "Exchanges should be able to persuade banks to issue bank accounts to them.”