Eight months ago, South Korea rocked the crypto world by imposing a blanket bank on initial coin offerings (ICOs). In an announcement last week, the country’s National Assembly made an official recommendation to reintroduce domestic ICOs. This proposal is backed by the three-hundred-member national legislature, on the proviso that ICOs. will adhere to the relevant investor protection provisions.
A mass exodus of crypto-companies
The special committee of the National Assembly went as far as accusing the government of ‘neglecting its duty’ in responding appropriately to the blockchain boom, resulting in the mass exodus of domestic companies working in the sector.
The Assembly hopes to encourage and accelerate discussions on blockchain and ICOs and a legislative and policy proposal that supports ICOs has also been tabled. The committee on the 4th industrial revolution has also called on the government to form a task force that will comprise of public officials and private experts 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.”
A bill to legalise ICOs
This legislative effort first emerged after a group of legal experts and lawmakers, led by Rep. Hong Eui-Rak of the Democratic Party of Korea, began the process of drafting a bill that would legalise ICOs within the country.
“The bill is aimed at legalizing ICOs under the government’s supervision[…],” he said at the time. “The primary goal (of the legislation is helping remove uncertainties facing blockchain-related businesses.”
This turn of events comes after recent remarks from Korea’s financial watchdog who aims to focus on the “positive aspects” of crypto whilst suggesting that the government should relax cryptocurrency rules in the world’s largest cryptocurrency trading market.