South Korean Cryptocurrency Industry Set to Bubble Again as Authorities are on the Verge of Legalizing ICOs
After every rain comes sunshine; this is precisely the case in the South Korean cryptosphere’ as the dark clouds of regulatory uncertainties surrounding the Asian nation’s blockchain-based digital currencies are gradually fading away. Now, lawmakers in South Korea are putting preparations in top gear to enact a law that makes initial coin offerings a legal activity in the country.
Better Days Ahead for ICOs
Per Korea Times, a group of legal luminaries in the nation has joined forces in a bid to lift the embargo placed on organizing new initial coin offerings in South Korea.
The ten-man team led by a reputable member of the ruling Democratic party, Rep. Hong Eui-rak, is determined to formulate a bill that will see to the legalization of ICO projects and get it endorsed by the end of 2018.
Speaking at an ICO conference held at the National Assembly on May 2, 2018, the lawmaker reiterated that:
“The bill is aimed at legalizing ICOs under the government’s supervision,” adding “The primary goal [of the legislation]is helping remove uncertainties facing blockchain-related businesses .”
Not Birds of the Same Feather
On September 4, 2017, the then cryptocurrency capital of the world, China through the global crypto space into a state of severe FUD (fear uncertainty and doubt) by placing an embargo on initial coin offerings and trading of ICO-generated tokens.
Unsurprisingly, the South Korean authorities followed in the steps of China and placed a blanket ban on ICOs towards the end of September 2017.
However, in March this year, the government started looking towards allowing ICO schemes to function under some defined conditions which include the regulators having unrestricted access to data on capital inflows from both individual investors and retail traders into the ICO industry.
A top Korean government official told Korea Times earlier in March 2018:
“The financial authorities have been talking to the country’s tax agency, justice ministry, and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met.”
Cryptos for the Good of All
The creators of the bill have however stated categorically that they are only working to ensure unfavorable regulation does not stifle credible ICO schemes organized by public organizations and research bodies that aim at promoting the growth and development of the distributed ledger technology.
Additionally, the bill states that regulatory authorities including the Financial Services Commission, and the Ministry of Science and ICT will closely monitor these ICO projects.
The Speaker of the South Korean National Assembly, Chung Sye-kyun further emphasized the aim of the bill by saying that:
“Blockchain and cryptos can be used in various public sectors for good causes. Given their potential, we need to work to help reduce political uncertainties they face.”
Slow and steady, the entire cryptocurrency industry is beginning to get regulated. In the coming months, it won’t be surprising to see the prices of digital currencies like bitcoin and the altcoins making new all-time-highs.