South Korea’s National Assembly Moves Official Proposal to Lift ICO Ban
South Korea’s National Assembly as officially proposed to allow domestic initial coin offerings (ICOs). Initial Coin Offerings were banned in September last year. Much time has elapsed since then. The National Assembly, acknowledging the need to do away with the ban, has shown maturity by officially putting in a recommendation to lift the ban.
Since the South Korean government did not come up with guidelines for ICOs, South Korean companies had to look overseas for businesses. Companies chose Singapore and Switzerland to start ICOs and were willing to shell out more money to do so. There was a higher risk for the investors. Investor community was fraught with the threat of counterfeit ICOs companies and companies who mimicked the leading companies in the ICO business.
The National Assembly took cognizance of the situation and recommended a legal policy to govern the ICOs. The Assembly recognized the need to include investor protection provisions in the legislation for ICOs.
Business Korea reported that the special committee on the fourth industrial revolution under the National Assembly held the last general meeting on May 28 and approved the activity reports over the past six months. The legislative and policy proposal of recommendation was finalized on the same day, and the committee blamed the administration of negligence of duty in reacting to blockchain application expansion, which was chosen as an essential subject in the regulatory reform area.
The special committee on the fourth industrial revolution said, “We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order. The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently provide industrial support. We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee.”
Investors and cryptocurrency traders would rejoice if the South Korean can cut down on taxation on the cryptocurrency businesses. Regulation with reasonable tax would help in bringing normalcy to an extremely volatile cryptocurrency space.
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