South Korean regulators have recommended coin issuers and crypto exchanges be authorized to operate through a licensing system. It would aim to mitigate investor losses from wash trading and bad actors in the markets.
One recommended regulation would force coin issuers to submit a white paper to the FSC about their project that includes details about the company’s officers, how it plans to use funds raised through an ICO, and what risks are associated with the project. Updates to the white paper would have to be submitted at least seven days before proposed changes could take effect.
Even companies with headquarters abroad that want their tokens traded on Korean exchanges would be required to adhere to the white paper rule.
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