Legislative body of South Korea pushes forward an official permit for ICOs

29 May 2018

National Assembly of South Korea is reportedly standing up for the lift of the ban imposed by the national government last year on trading tokens and conducting Initial Coin Offering campaigns.

Last September, it was reported that the Financial Services Commission outlined its strict position on the crowdsales of cryptocurrency tokens, saying it prohibits all forms of the fundraising methods on the basis of blockchain technologies irrespective of the technical terms used to define such procedure, further adding that trading cryptocurrencies will be illegal under their ruling.

The FSC stated at the time that Initial Coin Offerings, being overly speculative in nature, are viewed as violation of the capital market law. While the government was reportedly considering future removal of the ruling, no actions have been ever made to date to begin a fresh chapter in the ICO and cryptocurrency trading history.

Latest reports from BusinessKorea, however, reveal that the National Assembly is officially promoting a new bill to carry forward the ICOs from the ‘banned’ category to a regulated level, provided that the startups ensure proper investor protection measures.

The bill and the proposal for a new policy was put forth during a general meeting on Monday hosted by Special Committee of the Fourth Industrial Revolution under the National Assembly. The Committee noted that the government failed to provide adequate regulation and legislation framework to explore and use opportunities of the blockchain technologies across the nation.

A recommendation was made to establish a working group, which will be ensuring higher transparency of cryptocurrency trading in South Korea and provide support in developing a sound cryptocurrency trading ecosystem.

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