A member of South Korea’s National Assembly has urged the state to “open up the road” to Initial Coin Offerings (ICO) by easing up on regulations.
This is according to a report filed by South Korean financial outlet Economy.
The report cited Min Byung-doo, a Democratic Party lawmaker, as the one who would be introducing a project of for ICO legislation at the next round of the National Assembly.
He explained that the purpose of the new legislation is to allow ICOs while applying strict regulation for the adverse elements of the industry. The legislator said:
“We are looking at ways to open up the road to ICO[s] while strictly prohibiting negative factors such as fraud, speculation and money laundering.”
Min Byung-doo has also proposed to local officials such as the Financial Services Commission (FSC) that the government should legalize ICO operations in South Korea. He claimed that “prohibition is not the only way.” According to the report, after speaking with the government and the FSC, the authorities’ stance has “changed prospectively compared with the past.”
Urging on the government to ease regulations for the industry, Min Byung-doo stressed that the ban on ICO causes “weakening competitiveness” in South Korea’s blockchain industry, likening it with the levels in the progress made by the United States, adding:
“[South Korea’s] blockchain-related industries were at the top of the world in terms of competitiveness, but the competitiveness in ICOs has dropped sharply. Now, 75% of projects in the industry belong to the United States only, which is the world’s top competitor.”
The lawmaker cautioned of an uncertain future in regulation for the industry would actually “prevent the growth of the industry itself.”
The FSC — South Korea’s financial regulator — announced they would prohibit all kinds of ICOs in September 2017, explaining at the time that ICO token sales required rigorous monitoring and oversight. The initial ban has since been followed by numerous hints of a potential reversal.
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