South Korea Should Allow IEOs, According To Dunamu CEO

Key Points:

• Dunamu CEO Lee Seok-woo has called on the South Korean government to allow the initial exchange offering of cryptocurrency exchanges.
• He argues that digital asset trading does not distinguish between borders and time, which makes it different from the current market.
• According to the Dunamu CEO, the nascent token market also needs to generate digital financial innovation by encouraging the active participation of innovative blockchain companies.

According to Decenter, Dunamu CEO Lee Seok-woo attended the meeting and called on the South Korean government to allow the initial exchange offering (IEO) of cryptocurrency exchanges.

CEO Lee attended the ‘DCON 2023: Digital Asset Conference for Healthy Market Creation’ held at Conrad Seoul in Yeouido, Seoul, on the 16th and supported his view on IEO:

“Digital assets are traded regardless of borders and time, making them distinct from the existing market. The remaining homework is how to embrace and grow the digital asset industry.”

An IEO is a cryptocurrency exchange-supervised token sale. IEOs are only accessible to users of the exchange. IEOs, like ICOs, enable investors to acquire new cryptocurrencies (or tokens) while generating funds…

Many in the crypto community consider IEOs to be the next stage in the growth of ICOs. Security Token Offerings (STOs) were meant to be a solution since ICOs are unregulated, and most of them turned out to be frauds.

Yet, most STOs are still hampered by time-consuming and costly procedures, as well as suffocating rules. IEOs serve as a bridge that resolves concerns on both sides.

Several investors prefer IEO platforms over ICOs because they provide a higher degree of due diligence.

CEO Lee underlined the importance of seeing the digital asset market from a fresh angle in order to institutionalize digital assets. He called for institutionalization in the direction of encouraging corporate engagement in token securities, for which financial norms were just issued.

“Even in the token securities market, which is just taking its first steps, it is necessary to create digital financial innovation by encouraging active participation of innovative blockchain companies.”

South Korea is also tightening regulations regarding tokens and cryptos following the Terra crisis last year.

As Coincu reported, South Korea’s Financial Services Commission (FSC) issued rules clarifying which blockchain-based equivalents of traditional securities, known as security tokens, will be subject to the country’s capital markets legislation.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News