South Korea’s National Assembly Proposes Lifting Ban on ICOs

Ifeanyi Egede
  • The South Korean national assembly has made an official recommendation to lift the ban on domestic ICOs.
  • Under the new recommendations, ICOs would have to adhere to relevant investor protection provisions.

The 300-member South Korean national assembly has made an official recommendation to lift the ban on domestic ICOs.

The report, published today by Business Korea, does however confirm that ICOs would under the new rules have to adhere to relevant investor protection provisions.

With the ICO ban resulting in a number of domestic firms moving to Singapore and Switzerland, the National Assembly’s special committee on the fourth industrial revolution accused the South Korean government of “neglecting its duty” in responding to the blockchain sector.

The report also suggested that there will be an acceleration of the dialogue on blockchain and ICOs between the National Assembly and the government - with the special committee laying out some proposed legislative and policy recommendations to allow ICOs.

Calling on the government to form a task force comprising both public officials and private experts so as to “improve transparency of cryptocurrency trading and establish a healthy trade order,” the report further advised that:

“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.”

South Korean National Assembly

The effort to lift the ban started earlier this month – about 8 months after the country placed an official ban on domestic ICOs – when a group of lawmakers began to draft a bill to legalize the launching of new ICOs in South Korea. Hong Eui-rak, who led the group of lawmakers, said at that time that:

“The bill is aimed at legalizing ICOs under the government’s supervision..The primary goal (of the legislation is helping remove uncertainties facing blockchain-related businesses.”

Hong Eui-rak

 

Featured Image Credit: "Golden bitcoin and South Korea flag" by "Marco Verch" via Flickr; licensed under "CC BY 2.0"