Review of mandatory white papers and disclosures when issuing domestic coins… “De facto ICO allowed” analysis

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[Blockchain Today reporter Han Ji-hye] The obligation to issue domestic cryptocurrencies will be strengthened.

On the 23rd, Money Today reported exclusively that the Financial Services Commission is considering restricting the issuance qualifications related to virtual asset issuance regulations to corporations and making it mandatory to submit and disclose a white paper containing the opinion of a specialized institution.

According to the report, the ‘Basic Directions and Issues of the Virtual Box Industry Rights Act’ submitted by the Financial Services Commission to the National Assembly’s Political Affairs Committee on the same day include △Issuance regulations, △Supervision of public offering funds, △Listing and delisting regulations, △Disclosure regulations, and △Rules on unfair practices.

After establishing the disclosure standards and procedures, criminal punishment is also possible for violations. The use of funds raised through virtual asset issuance is also reviewed through verification such as external audits. With the idea of ​​regulating the issuance of virtual assets as a regulatory framework for the issuance of securities, it is interpreted as a position to allow virtual asset disclosure (ICO).

According to the draft submitted by the Financial Services Commission, only corporations will be eligible to issue a coin public offering. In addition, a ‘coin white paper’, which is the same concept as a ‘security declaration’ and ‘investment prospectus’ in the stock market, is also essential. In the white paper, △Participant △Project technology △Type of virtual asset △Plan for use of public offering funds △Base technology △Risk, etc. should be explained. The status of holding of virtual assets of the issuer and related parties, transaction risk (possibility of loss, etc.), fees, taxes, consideration for listing, and important matters for management should also be included.

In addition to this, it is necessary to obtain a coin evaluation opinion from a coin evaluation institution, and the public offering funds for coin issuance must disclose financial statements.

When listing coins on an exchange, the FSC proposed two methods: △ stipulating the listing standards and procedure rules in laws and △ regulations for voluntary listing of newly established legal entities (associations). Financial authorities only have the authority to issue correction orders after reviewing the standards established by the association. The existing method of listing and delisting examinations by individual exchanges in accordance with the listing business rules is maintained.

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