A group of lawmakers in South Korea is drafting a bill to legalize the initial coin offerings (ICOs) under new conditions set by the government. The new bill emanated from the need to review the current situation in the country during the ICO and Blockchain Technology Forum held recently at the National Assembly. Last year, the South Korean government imposed a ban on the domestic ICOs due to the risks and uncertainties associated with the crypto asset markets.
Currently, the domestic operators such as Bithumb, Kakao Corp, Naver Hyundai BS&C, and others have been secretly establishing subsidiaries and launching their crypto coins in other countries including Singapore, Switzerland, Japan, and Hong Kong.
Only Regulated ICOs Will Be Allow
The new legislation is intended to legalize certain ICOs under the government’s control to help eliminate the speculative investment aspects associated with the digital currencies. The bill focuses on the ICOs that champion innovation and sustainable development of blockchain technology.
Therefore, only ICOs from recognized research institutions and public firms will be allowed to participate in the ICOs. Hence, the unlimited ICOs will not be allowed to operate in the country. If the bill succeeds, the FSC, Ministry of Science and ICT will be given the mandate to regulate the ICOs.
The Need For A Solid Regulatory Framework
With the increasing number of scams and unsuccessful ICO projects across the world, the residents believe that there’s a great need for a firm regulatory framework to fuel the growth and development of the cryptocurrency market.
Cryptocurrency trading has significantly become a lucrative business in the entire region of Far East Asia and currently, there are four leading exchanges fueling the trade volumes especially in Hong Kong and Singapore where the regulatory frameworks and other mechanisms have been emphasized.
The South Korean government has declared that it would support the development of the crypto market in the region and plans are underway for Seoul (the country’s capital city) to launch its own crypto token known as S-Coin. South Korean’s move to re-open its doors for ICOs will encourage the launch of startups to take up the lucrative business opportunities in this promising market.
