South Korean Government May Legalize ICOs Again
South Korea lawmakers are considering a U-turn that will see the legalization of Initial Coin Offerings (ICO) in the country.
As reported by Korean Times on May 2nd, lawmakers in South Korea are working on a bill which will legalize a limited number of newly launched ICOs that will be under government supervision.
After banning the ICOs completely last year, South Korean startups took to abroad to launch their ICOs. As stated by Choi Jong-Ku, the chairman of Financial Services Commission [FSC], the agency had remained skeptical towards the investor protection policies.
“There is a possibility that during the creation and issuance of a new digital currency through an ICO, various Ponzi schemes and scam operations may emerge. The team will continue its negative stance towards the investor protection policies applied on the local crypto market,” Choi said.
Hong Eui-rak, the representative of the ruling Democratic Party of Korea is leading the regulatory move along with 10 other lawmakers that advocate the legalizing of new ICOs. In a forum on ICOs and blockchain technology at the national assembly on Wednesday, he said that the bill will focus on legalizing ICOs under the government’s supervision.
“The primary goal of the legislation is helping remove uncertainties facing blockchain-related businesses,” he added.
According to the bill, the ICOs will be under the supervision of the Financial Services Commission and the Ministry of Science and ICT. And will only permit ICOs that are started by public organizations and research centers working towards developing blockchain technology.
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