South Korea Legalizing ICO in November?

During the annual audit of government actions by the National Assembly of South Korea, the head of the country's state policy coordination office, Hong Nam-ki, said that local regulators are considering legalizing the ICO. In November, the South Korean government will hold a meeting at which it will discuss allowing the implementation of ICO projects in the country.

"We are going to form the position of the government in November based on the results of the investigation at the end of October," — declared Hong Nam-ki.

Also in April, the Democratic Party of South Korea announced that it had begun to develop a regulatory framework for the legalization of the ICO with the support of legislators. Officials assumed that the ICO projects created by public organizations and research centers would be under the control of the Financial Services Commission and the Ministry of Science, ICT and Future Planning.

In May 2018, the deputies of the South Korean National Assembly began to demand that the ban is lifted. In particular, the National Assembly Committee on the Fourth Industrial Revolution accused the government of neglecting its responsibilities in the blockchain sector and urged to study proposals to protect investors in the ICO market.

He stressed that the South Korean Financial Services Commission (FSC) has been conducting ICO market research since September 2018. The official himself stressed that the ICO must be resolved in order to promote the development of the blockchain in the country.

In September 2017, FSC banned ICO projects in South Korea. This happened shortly after a similar decision was made by the financial regulators from China. Then representatives of the FSC noted that the initial coin offerings are a popular tool for raising funds from startups and individuals. However, at the same time, they carry high risks of financial bubbles, various market manipulations and do not contribute to the protection of investors' rights.

It is worth noting that after the ICO ban, the government did not demand to return funds from investors to companies, and did not stop the work of local crypto exchanges. In addition, the authorities did not ban crypto enthusiasts from investing in overseas ICO projects.

Also in March, it became known that the financial authorities of South Korea are preparing a plan to legalize ICO in order to develop blockchain technologies in the country. Anonymous sources reported that financial regulators were discussing this with the tax authorities, the Ministry of Justice, and other government agencies that would allow for an ICO in Korea, subject to certain requirements.

Also in April, the Democratic Party of South Korea announced that it had begun to develop a regulatory framework to legalize the ICO with the support of legislators. Officials assumed that the ICO projects created by public organizations and research centers would be under the control of the Financial Services Commission and the Ministry of Science, ICT and Future Planning.

In May 2018, the deputies of the South Korean National Assembly began to demand that the ban is lifted. In particular, the National Assembly Committee on the Fourth Industrial Revolution accused the government of neglecting its responsibilities in the blockchain sector and urged to study proposals to protect investors in the ICO market.

In addition, the department officials called to form a working group of government representatives and independent experts to develop policies in the blockchain sector and ensure the transparency of cryptocurrency trade.