South Korean National Assembly Passes a Proposal to Lift ICO Ban

South Korea, the country which put an official ban on ICOs, describing them as over-speculative and constitute a “violation of capital market law”, last year in September 2017, is now working on getting back this fundraising method into the country’s cryptocurrency market. Earlier this year in March 2018, the financial authorities were having a discussion with the country’s tax agency about the feasibility of introducing ICOs back if certain conditions are met.

Now, according to the latest report from Business Korea, the National Assembly of South Korea has put forward an official recommendation to allow the domestic ICOs in the country.The report backed by at least 300 Members of Parliament seeks to legalize ICOs and encourage talks between the South Korean government and the private sector specializing in blockchain and other related projects.

The news outlet elaborated:

“The National Assembly has officially made a proposal to allow domestic initial coin offerings (ICOs). As the administration is sitting on its hands after imposing a total ban on ICOs in September last year, the National Assembly has come forward with an official recommendation.”

A general meeting was held on Monday, where the legislative and policy proposal was decided of the National Assembly’s Special Committee of the Fourth Industrial Revolution. The body further hit out at the government over what it perceives as its failure to introduce promised core regulatory reform aimed to expand the role of blockchain technology in the country, the article states.

The committee has asked the government to form a proper task force with the join coordination between public officials and private blockchain experts for a creating a legislation that allows the technology to flourish while simultaneously creating a regulatory framework which keeps the investors protected in the still maturing cryptocurrency space. The committee said:

“We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order. The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently provide industrial support. We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee.”

Recently, the new chief of South Korea’s regulatory agency had hinted that he remains positive on the future of digital currencies and that the authorities will take necessary steps which can be a little less tight on the the existing rules and regulations relating to the trading of digital currencies as well as other associated activities.

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