South Korean lawmakers are working on a bill that would legalize some Initial Coin Offerings, The Korea Times reports.
Why it is important
- A number of traders and investors relocated to South Korea following China’s ICO ban. The daily KRW trading volume at local exchanges has repeatedly exceeded $ 2 billion.
- Asia may become a hotspot for crypto investors: while Western regulators are still determining the legal status of ICOs,countries such as South Korea and Japan are successfully (and swiftly) moving towards legalization.
During a forum on ICOs and blockchain technology at the National Assembly on Wednesday Rep. Hong Eui-rak of the ruling Democratic Party of Korea said that “the bill is aimed at legalizing ICOs under the government's supervision”. He said the bill was based on a joint study by his office and the Korea International Trade Association (KITA).
"The primary goal (of the legislation) is to help remove uncertainties facing blockchain-related businesses," Hong said.
The bill does have important caveats - only ICOs initiated by public organizations and research centers committed to promoting and developing blockchain technology will be considered legal. These ICOs will be subject to supervision by the Financial Services Commission and the Ministry of Science and ICT.
At the same time, National Assembly Speaker Chung Sye-kyun underscored the lawmakers' role in removing political uncertainties facing cryptos and blockchain technology:
"Blockchain and cryptos can be used in various public sectors for good causes. Given their potential, we need to work to help reduce the political uncertainties they face."
By Ekaterina Ulyanova