South Korea decides to formalize the ICOs
To err is human, to correct is wise the famous phrase that reflects the decision that has just taken the leaders of South Korea. The process for the legalization of the ICOs with the respective approval of the government is officially initiated.
South Korea last year had taken a very strict position on the initial offers of currency, by making an absolute ban on all projects abruptly, which created a sharp decline in prices of the market of cryptoactive
Representative Hong Eui-rak of the ruling Democratic Party of Korea has joined ten other lawmakers to support a bill that will allow ICOs, according to local media.
"The bill aims to legalize ICOs under government supervision (...) The main objective is to help eliminate the uncertainties faced by companies related to block chains," Hong said on Wednesday.
The bill apparently has the backing of the Korea International Trade Association (KITA), which conducted a study on the matter with Hong's office, which led to the proposal of this new law.
"Blockchain and cryptos can be used in various public sectors for good causes. Given its potential, we must work to help reduce the political uncertainties they face, "said National Assembly President Chung Sye-kyun.
The exact details of the process for legalization are in full formation for which they are not clear at this stage, but the new ICOs will require the supervision of the Financial Services Commission and the Ministry of Science and ICT.
This type of news indicates that developed and economically consolidated countries are still in the process of adapting the Blockchain technology and all the areas and activities that this technology entails. Months ago, South Korea reached a critical point where it was proposed to close the exchanges of the country; exchanges such as Bithumb and Upbit, are important pillars in the market dynamics of cryptocurrencies, if they closed or temporarily suspended while moving to countries in favor of the crypts, would have created a significant price collapse that would cost months to achieve the recovery of prices before the collapse. Heroically, the South Korean businessman and investor strongly opposed the government's projects and pressured them to change their opinion about the cryptoactives by collecting more than 200,000 signatures in days and leaving the exchanges operational.
For South Korea, having high volume exchanges and now a legal framework for the launch and commercialization of ICOs, will make it one of the pioneer countries in the purchase and sale of all types of tokens and cryptoactives. China and the rest of the countries that maintain an anti-crypto stance should take as an example this case of change of opinion, based on knowing and learning the advantages of the block chain and what it entails.