South Korea and China to Invest in Blockchain Technology

Kim Dong-Yeon, the Minister of Finance of South Korea, shared his opinion regarding blockchain technology during the economic event in China
05 February 2018   115

South Korea's government does not plan to prohibit cryptocurrency trading, it intends to regulate and control it as blockchain is an important technology for its economy.

Kim Dong-Yeon, the Minister of Finance of South Korea had a meeting with the People’s Bank of China’s governor. They talked about a potential partnership between China and South Korea.

During his visit he stated that blockchain technology is an important breakthrough, that is why the ministry will take a cautious approach in regulating the cryptocurrency trading. In order to avoid the negative use of cryptocurrencies, the ministry will impose strict regulations.

According to Mr. Yeon, investing in blockchain technology will bring benefits to the economies of the countries.

Mr. Yeon visited the advanced technology hub, called Zhongguancun, based in Beijing. He also stated that he plans to invest in a blockchain platform developed in Seoul. The “second Techno Valley” will encourage around 1,400 startups to work side by side with the South Korean government.

In his opinion, the future plans seem to be promising for both economies, because both countries are focused on developing their economies through innovation.

This news is great for both investors and users because the result of the collaboration of two powerful countries should be amazing.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   32

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.