LucentBlock: "We understand regulators’ careful review… We will do our utmost to secure preliminary approval"

As the decision on preliminary approval for an over-the-counter (OTC) exchange for fractional-investment security tokens (STO) was postponed, LucentBlock—at the center of the controversy—expressed a positive stance toward the financial authorities’ decision.

On the 14th, LucentBlock CEO Heo Se-young said in a statement, “We understand the purpose of the financial authorities’ careful review,” adding, “If additional requirements are requested during the re-deliberation and final announcement process, we will diligently follow the relevant procedures and cooperate actively.”

He added, “We hope this review process will conclude in a way that faithfully reflects the legislative intent of the Act on Special Cases for Supporting Financial Innovation and the original purpose of introducing the system.”

The Financial Services Commission on the day refrained from putting the agenda item on preliminary approval for a fractional-investment OTC exchange on the table at its regular meeting, effectively deferring a decision. It had been expected to grant preliminary approval to up to two of the Korea Exchange (KDX) consortium, the Nextrade (NXT) consortium, and the LucentBlock consortium, but the authorities are seen as having shifted to a cautious stance as controversy emerged over the licensing process.

Heo said, “Even in difficult circumstances, the interest and sense of the issues sent by the startup community give small startups great strength to take on challenges within the system,” adding, “LucentBlock will do its utmost until the very end to secure approval.”