South Korea, the country which introduced a blanket ban on ICOs 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.
This ban on the ICO operations by South Korea has seen many of the cryptocurrency shifting their base to some of the more cryptocurrency and ICO-friendly nations like HongKong, Switzerland and Singapore.
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 further goes to state that the 300-member national legislature has pushed forward this proposal to allow ICOs that adhere to all the provisions of investor protection.
The report also suggests that discussions on the blockchain developments and ICOs, between the National Assembly and the South Korean government, are now on fast-track. The pushing of the proposal to legalize ICOs, by the National Assembly, is the result of the recent general meeting of The Special Committee on the Fourth Industrial Revolution under the National Assembly.
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.”
Earlier this month, lawmaker Hong Eui-rak of the Democratic Party of Korea, which is currently the ruling government of the country had begun drafting a bill in order to legalize the launching an ICO in the country. At that time, the lawmaker said:
“The bill is aimed at legalizing ICOs under the government’s supervision[…]. The primary goal (of the legislation is helping remove uncertainties facing blockchain-related businesses.”
Recently, the new chief of South Korea’s regulatory agency has hinted that he remains positive on the future of digital currencies and that the authorities will take necessary measures in order to ease the existing norms relating to the trading of digital currencies as well as other associated activities.