🔥🔥🔥South Korean Lawmakers Begin Push for ICO Legalization
🔥bitseven.comSouth Korea imposed a complete ban on domestic ICO fundraising in September 2017, but a couple of MPs are now spearheading a campaign for introducing regulations to unfreeze the sector.
South Korea should unfreeze initial coin offering (ICO) fundraising, this time in a fully regulated manner, Korean Democratic Party member Min Byung-Doo said as cited by Business Korea. Min and fellow party member Roh Woong-rae are behind a campaign that seeks to push the government into reversing the country’s ICO ban and introduce regulations that would foster the blockchain industry, which Roh called “a key sector of the Fourth Industrial Revolution.”
“The National Policy Committee is planning to draft a bill [on] ICOs and blockchain and hold a public hearing on it in November. We will urge the government to create a working group to be participated in by related associations and organizations to exchange information and solve problems,” Min stated at a forum supported by the Korea Blockchain Industry Association.
He went on to tell the audience:
“As blockchain and cryptocurrencies have merits and demerits, only confident governments can handle them properly. A case in point are Singapore, Switzerland and France. These countries have opened up the road to ICOs for companies.”
Korea has remained one of the most active crypto markets, with speculative premiums on almost all digital assets. However, projects are left seeking ICO alternatives to secure funds. Since different jurisdictions offer various options for fully legalized ICOs, projects face miscellaneous challenges.
The Korean government is permissive of exchange regulation, which has made the country one of the biggest hubs for crypto asset trading. However, ICO and token issuances are frowned upon because the authorities have had bad experiences with risky investment schemes for traditional products such as stocks.
In the past year, Korea missed on one of the most active periods for ICO fundraising as projects rode the hype. However, funding dwindled in the summer of 2018, dropping to just $160 million worldwide in September.
ICO fundraising varies by country, with the US leading the way and other hubs attracting projects due to favorable local laws. In Europe, where ICO projects remain unregulated but tolerated, this funding model is failing to take off. Switzerland is an exception due to its favorable regulations and a strong financial services sector.
Full ICO regulation solves several problems, including the inadvertent issuance of a token that could be deemed an unregistered security. With no clear rules in place, projects prefer to delay fundraising or seek jurisdictions with favorable regulations.
However, the lack of regulations cannot stop Korean buyers from potentially participating in ICOs. In a dramatic case of an overhyped ICO fraud, buyers were swindled out of $8 million for a project that claimed to have discovered a sunken Russian battleship carrying massive amounts of gold.
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