South Korea’s National Assembly Submits Proposal to Allow ICOs
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May 29, 2018
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The South Korean National Assembly has officially made a proposal to allow local initial coin offerings (ICOs), potentially lifting the blanket ban imposed by the government last September, Business Korea reported today.

Due to the government’s failure to formulate ICO guidelines, Korean startups and blockchain companies are issuing tokens in more hospitable jurisdictions, such as Singapore and Switzerland.

During the general meeting on the 28th of May, the National Assembly’s special committee on the fourth industrial revolution accused the current administration of “neglecting its duty” in responding to the blockchain sector, calling for the formation of a “task force” to “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,” the special committee said.

The ban on ICOs has held up for nearly eight months. In May, the Democratic Party of South Korea, led by Rep. Hong Eui-rak, began developing a legal and regulatory framework for the legalization of ICOs. “The bill is aimed at legalizing ICOs under the government’s supervision,” he said at the time.

“The primary goal [of the bill] is helping remove uncertainties facing blockchain-related businesses.”

By Nadya Astam

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