South Korea may be ready to start easing its hard position towards Initial Coin Offerings (ICOs). Back in October, South Korea decided to ban all Initial Coin Offerings in the country. The country’s Financial Services Commission (FSC) said that investments in cryptocurrencies ‘are being pushed into a non-productive speculative direction.’
But a group of lawmakers may be ready to introduce a bill that legalizes a limited number of ICOs. The bill would support new ICOs that will have to be under the supervision of the government. The main intention is to stop companies from moving abroad to gather funds through an ICO.
South Korea to Ease its Position Towards ICOs
South Korea was, after China, one of the first countries that decided to ban Initial Coin Offerings. The government wanted to control the crypto market and avoid crypto scams that were spreading with this fundraising method.
Now, the representative of the ruling Democratic Party of Korea, Hong Eui-rak, is the leader of the regulatory move. At the same time, 10 other lawmakers are working in order to promote the bill.
During a forum on blockchain and cryptocurrencies, Hong said about the bill:
“The bill is aimed at legalizing ICOs under the government’s supervision. The primary goal of the legislation is helping remove uncertainties facing blockchain related businesses.”
Of course, not all Initial Coin Offerings will be allowed, but instead, only the ICOs initiated by public organizations will be allowed. At the same time, educational institutions and research centres will also be able to develop and promote blockchain technology.
The new ICOs will be regulated by the Financial Services Commission of the country (FSC), and the Ministry of Science and ICT.
South Korea is one of the most active countries in the virtual currency market. Indeed, it has one of the highest trading volumes on earth after the United States and Japan. The government has been taking different restrictive measures for individuals to void investing in cryptocurrencies.
Of course, the measures were not effective. Before the elections that will take place in June, different candidates and political parties are trying to show some support for blockchain technology and the cryptocurrency community.
China is another country that has decided to impose strong regulations to the market. It has banned all ICOs and cryptocurrency services from its territory. At the same time, some reports suggest that the government was spying on its population to see whether they were involved in crypto-related chat groups or similar forums.
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