"ICO is still in its infancy and has no industry practices yet. Appropriate rules must be set to enable ICO to obtain public trust and to expand as a sound and reliable financing method. Based on a shared awareness of this necessity, financial institutions, non-financial companies, and venture companies have co-founded the ICO Business Research Group.">> South Korea also discusses ICO regulations The set guidelines are as follows:
"ICOs should be designed to be acceptable to existing shareholders and debt holders."
"ICOs should not become a loophole in existing financing methods as equity finance."The ICO Business Research Group proposed five trading principles:
- "Token sellers should confirm the identity (Know Your Customer: KYC) and suitability of customers."
- "Administrative companies that support the issuance of tokens should confirm the KYCs of issuers."
- "Cryptocurrency exchanges should define and adopt an industry-wide minimum standard on token listing."
- "After tokens are listed, unfair trade practices of such tokens such as insider trading should be restricted."
- "Parties related to the trading of tokens such as issuers, administrative companies, and token exchanges should make efforts to ensure cyber security."