South Korea legalizes new ICOs, but under tight control

South Korea Passes New Law Legalizing Crypto Trading

A group of South Korean lawmakers are currently working on a bill to legalize the launch of new ICOs and digital currencies. This was reported on May 2 by The Korea Times..

The head of the ruling Democratic Party of Korea Hong Yu-rak, along with other lawmakers, support the new bill and plan to sign it before the end of this year..

As part of his speech at the ICO and blockchain technology forum at the National Assembly on Wednesday, Hong announced that the bill aims to legalize ICOs under government oversight. In addition, it will be based on the results of a joint study of the issue by the Hong cabinet and the Korea International Trade Association..

According to Hong, the main purpose of the bill — help eradicate doubts and uncertainties about blockchain companies.

According to the bill, ICOs initiated by public organizations and research centers will be held under strict control by the Commission for the Regulation of Financial Services Markets and the Ministry of Science and Information and Communication Technologies..

South Korea legalizes new ICOs, but under tight control

Speaker of the National Assembly Chung Xu-kyun emphasized the role of lawyers in resolving the issue of political instability around digital currencies and blockchain technology. He is convinced that cryptocurrencies can be used for good in various public sectors. Given the full potential of cryptocurrencies, it is necessary to reduce the negative that they meet in political circles..

Lobbying for the ICO legalization bill is the first step towards lifting the ban imposed on ICOs by the government late last year. The reason for this was speculative investments in cryptocurrency..

And in March 2018, there was a rumor that some associations in the South Korean government were considering lifting the ban on ICOs if new placements were carried out in accordance with strict government rules..

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text: Marina Shmatkova, photo: Visual Hunt 

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