South Korean legislators have formally proposed an end to the country’s ban on initial coin offerings (ICOs), according to a report from BusinessKorea. The National Assembly has reportedly suggested that ICOs be allowed as long as the country takes steps to provide stronger protection for investors.
South Korea’s regulators had issued the ban on token sales last September to dampen rampant speculation in the cryptocurrency markets, and due to concerns amid growing concern that ICOs were not compliant with existing capital market laws. Legislators have reportedly grown impatient with the South Korean administration’s failure to take up the ICO challenge. As BusinessKorea reports:
“With the government failing to present any guidelines for ICOs, domestic blockchain companies are going to Singapore and Switzerland to do an ICO and pay unnecessary expenses. Investors are also exposed to the risks of crime impersonating ICOs of leading companies.”
Legislators developed the proposal during a Monday meeting of the National Assembly’s Special Committee of the Fourth Industrial Revolution, and outlined their broader goals:
"We need to form a task force including private experts in order 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.”