The chairman of the National Policy Committee in Korea has suggested for the legalization of initial coin offerings (ICOs), given that a regulatory framework is put in place, Coindesk reported October 2.
Min Byung-Boo, a member of the nation’s governing Democratic party, told Coindesk Korea that he does “not want to close the ICO door completely like it is now” since it’s becoming a global trend. He added that the state should not ignore the issue.
Accordingly, the policy chairman spoke earlier Tuesday during 8th plenary session of the National Assembly where lawmakers threw question to the administration.
Regulation is not bad. It should also be regulated. That creates trust in this market. [However] it is not the law as it is now, but it is not the attitude of the government to take the actual regulations.
The chairman specified that fraud, speculation and capital laundering must be strictly prohibited, and that the cryptocurrency industry would have to self-regulate and offer safety standards as well. Korea’s Financial Services Commission, the country’s financial watchdog, announced a ban on ICO’s in September of last year. However, the law hasn’t been acted out yet, according to the report.
The lawmaker put a finger on the economic advantages of token sales. He said that, there is a bearish view of cryptocurrencies in some quarters, while many token projects are perceived as a viable future.
Noting the vast amounts of money raised in some token sales, Min continued:
We can see that the flow of investment is clearly changing compared to ICO and Venture Angel stock fund raising. The ICO has raised $ 1.7bn in telegrams and $ 4bn in block.one, It is getting bigger and bigger.
Finding Solutions To ICO Issues
A number of bills aiming to provide a legal framework for cryptocurrencies have already been proposed to the National Assembly in South Korea. The Political Affairs Committee reportedly holds jurisdiction over such regulations.
Many forecast that the odds of regulations being passed in the near future may increase, with Byung-Doo as Chairman of the committee and his strong belief that ICOs should be allowed in law. However, the Politburo Committee must pass a vote on any legal measures at a future plenary session, Coindesk Korea wrote.
As a supporter of blockchain technology, Prime Minister Lee Nak-yeon stated:
I know that the ICO is being used as a fundraiser for the block chiefs, but the government is forbidding it to worry about side effects and market overheating. However, I think that the blockchain technology should be developed separately.
In a different statement at a panel discussion with the Chairman of Science, Min said, “Let the government, the National Assembly and the blockchain association quickly create a working group to block fraud, speculation, money laundering and develop the blockchain industry.”
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