The amended rules on approval of ICO portals give the applicants more flexibility and reduce risk on developing/investing in high-cost  work systems while the approval process is underway. Pursuant to the amended rules, the approval process is now divided into two steps, namely: (1) examining the qualifications and appropriateness of the required work systems according to the application supporting documents within 90 days from the date of filing the application with SEC, and (2) inspection of the actual work systems before granting permission to commence business operation whereby the approved ICO portal must show readiness of the overall work systems within 180 days from the date of approval. The deadline for the first-year operating fee is also amended to be paid before the first date of beginning business operation instead of the date of approval, as previously required.

In addition, SEC has specified that the ICO portals must show that they have efficient IT systems and related policies or guidelines in accordance with the Notification of the Securities and Exchange Commission concerning Rules in Detail on Establishment of Information Technology System as well as the guidelines issued thereunder. This allows SEC to supervise the operation of ICO portal related to IT systems more efficiently and in accordance with the oversight standards imposed on other types of business operator. The amended rules have come into force since 1 April 2020.

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Note:

* ICO Portal is a provider of an electronic system for facilitating the offering of newly issued digital tokens. The ICO portal's duties include performing due diligence on the characteristics of digital tokens to be offered and qualifications of issuer, and ensuring completeness and accuracy of information contained in the registration statements, draft prospectus or any other information to be disclosed through the portal.