As reported by Korean Times on May 2nd, lawmakers in South Korea are working on a bill which will legalize the launch of new Initial Coin Offerings [ICOs] and cryptocurrencies.
After much skepticism, South Korea has decided to work on legalizing ICOs after new ICOs were banned in December last year to avoid risky investments on cryptocurrencies. As stated by Choi Jong-Ku, the chairman of Financial Services Commission [FSC], the agency had remained skeptical towards the investor protection policies. He said:
“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.”
Along with 10 other legislators, Rep. Hong Eui-rak of the ruling Democratic Party of Korea is backing the bill. 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.
Hong further added:
“The primary goal of the legislation is helping remove uncertainties facing blockchain-related businesses.”
Lawmakers also play an important role in removing political uncertainties associated with digital currencies and blockchain technology.
Chung Sye-Kyun, a speaker from the National Assembly said:
“Blockchain and cryptos can be used in various public sectors for good causes. Given their potential, we need to work to help reduce political uncertainties they face.”
According to the bill, the ICOs will be under the supervision of the Financial Services Commission and the Ministry of Science and ICT. And it will permit ICOs that are started by public organizations and research centers working towards developing blockchain technology.
A Twitter user commented:
“Icon will moon hard soon (in a couple of weeks/months)”
A market follower tweeted:
“Tim Draper made a good point that there’s now pressure on governments to work for people/companies looking for innovative nations to establish business.”