South Korea’s National Assembly Proposes Lifting Ban on ICOs

South Korea’s National Assembly Makes Official Proposal to Lift ICO Ban

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  • South Korea National Assembly proposes removing the ban on ICOs within the country.
  • The committee, however, asked the government to create a task force to improve transparency of cryptocurrency trading.

South Korea: Report reaching revealed that the legislative arm of the South Korean government – South Korea’s National Assembly proposed the lifting of the current ban on domestic ICOs within the country. reported last September that the South Korean regulator, the Financial Services Commission, banned initial coin offerings with the claim that ICOs are over-speculative and constitute a “violation of the capital market law.” Though last March, a report was released that the ban might be lifted, nothing tangible actually took place till date.

A local news channel, Business Korea, stated that South Korea’s National Assembly has officially recommended legislation to remove the ban on ICOs as long as ICO startups make provision for investors’ protections.

According to the report, the special committee of the National Assembly on the 4th industrial revolution held a general meeting yesterday 28th May, where the legislation and policy proposal was decided upon. The special committee also blamed the federal government for its failure in introducing promised core regulatory reform targeted at expanding the role of blockchain technology within South Korea.

The body further recommended the creation of a task force to “improve transparency of cryptocurrency trading and establish a healthy trade order” in the country. The committee also stated that:

“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.”

The committee suggested further that the South Korean government should launch a committee and new governance systems that would “systematically” develop blockchain policies and offer support to blockchain firms.

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