The government of South Korea is on a verge to legalise Initial Coin Offerings (ICOs) after it banned them in 2017. According to media reports, the coalition of lawmakers are looking to get a consensus in the National Assembly to pass the bill making ICOs completely legal in the country but with some conditions.
Korean representative Hong Eui-rak is known to be the face behind legalising ICOs. He’s the member of the ruling party, Democratic Party of Korea. According to him the bill is a result of the collaboration between his office and the Korea International Trade Association.
Speaking at the national assembly, on Initial Coin Offerings and Blockchain, he stated that the bill is aimed at legalizing ICOs under the government’s supervision. The primary goal of the bill is to help remove uncertainties in the Blockchain-related businesses.
While South Korea’s capital Seoul has also recently announced the launch of its cryptocurrency called S-coin.
The new legislation will not provide legal cover for unlimited ICOs. Instead, the bill will help ICOs promote growth and development of the Blockchain technology, hence only ICOs from research institutions and public organisations will be allowed to raise money. Further, these things will be monitored by the financial services commission as well as the ministry of science and ICT.
The legislations marks itself as the first definitive step taken by the Korean government to reverse the ICO ban in 2017. The country banned ICOs to prevent unregulated investments in cryptocurrencies. This new ICO bill will only recognise ICOs that actually innovate and not companies that have just any odd idea.
Further speaker of the national assembly, Chung Sye-kyun stated that Blockchain and cryptos have a big potential in various public sectors. “Given their potential, we need to work to help reduce political uncertainties they face.”
Crackdowns in the nation in 2017 were one of the biggest reasons for decline in crypto prices. News of an impending ban, like China, created panic and worldwide protests. The authorities eventually conceded and disallowed anonymous trading. The authorities have further declared in recent times that it would support ICos and encourage the crypto market.