South Korea, the third most prominent Bitcoin marketplace in the world, has long remained a source of uncertainty in the cryptocurrency space. The country’s government flat-out banned initial coin offerings (ICOs) in September 2017 and has since failed to deliver any sort of clarity in regards to the future of cryptocurrency within the East Asian nation. Meanwhile, domestic companies have flocked to Singapore and Switzerland to circumvent South Korean restrictions, while South Korean investors have been increasingly exposed to fraudulent imposters.
Now, the East Asian nation’s National Assembly is seeking to finally provide some definitive answers by putting forth an official proposal to permit domestic ICOs. The National Assembly recommends legally allowing ICOs under conditions which provide investor protections.
The proposal was put forth at the last general meeting of the Special Committee on the Fourth Industrial Revolution on May 28, where it was stated:
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.
The move by South Korea’s 300-member unicameral national legislature has sparked international interest, with many in the blockchain and cryptocurrency space eagerly anticipating an accelerated discussion over the emergent market between the nation’s government and National Assembly.
The National Assembly’s Special Committee on the Fourth Industrial Revolution also took the time to accuse South Korea’s administration of failing to fulfill its duty in responding to the expansion of blockchain applications, which should have been a top priority for its regulators.