South Korea May Lift ICO Ban

According to the latest news reports, South Korea’s government is planning to lift its ban on Initial Coin Offerings (ICOs). The country’s National Assembly, which is the legislative division of the government, is lobbying for the removal of the ban on ICOs.

Back in September 2017, the Financial Services Commission, the financial regulator of South Korea, outlawed the sale of tokens in the country, saying that these activities were too speculative and also violated “capital markets laws”.

Proposal for Legalization of ICOs

In the last eight months since the ban on ICOs was imposed, there have been reports that the ban may be lifted. Nothing has really happened with regard to these rumours so far.

Now, it seems that more concrete action is finally being taken. The National Assembly’s members have officially tabled the recommendation that the ban on ICOs should be reversed. The proposal, however, is not for a blanket lifting of the ban. Rather, it suggests that the ban is lifted for domestic ICOs only – after being subjected to new government regulations.

This proposal was created by the National Assembly’s special committee which has been studying the “Fourth Industrial Revolution”. The committee is being personally led by the President of South Korea, Moon Jae-in, and is seeking to increase the legal status of cryptocurrencies in the country.

In fact, this committee has gone so far as to criticize the South Korean government, stating that the government is “neglecting” its duty to encourage growth in the Blockchain industry.

Recommendations by the Committee

The special committee has also recommended that the South Korean government establish a task force that can focus on developing effective policy responses to the cryptocurrency industry. The committee stated that governance systems needed to be set up at the central government level so that effective industrial support could be provided.

Furthermore, the committee pledged to set up a legal basis for the cryptocurrency industry, which would cover cryptocurrency trading as well as be granting permissions to ICOs.

The proposal and recommendations were made public earlier this month, with the representative of the ruling Democratic Party, Rep. Hong Eui-rak announcing that he was drafting a bill that would focus on easing the restrictions placed on ICOs.

He stated that the bill he is currently drafting is being created to legalize ICOs – under government supervision. The idea is to remove the uncertainties that are surrounding Blockchain-based businesses in the country.