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South Korea has no choice but to legalize ICOs, and this may happen soon

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The South Korean government has no choice but to legalize Initial Offerings of Money (ICO) and Its Representative Hong Eui – The Democratic Party of the Democratic Party of Korea Obtained the Support of Ten Legislators to Challenge the Current Ban on Offices of domestic countries.

Opportunities worth billions of dollars

The economy of South Korea has only begun to improve in recent years and given the positive discussions that the administration of President Moon Jae-in had with the North Korean authorities last week, South Korea's economy should only grow in the long run.

In 2017, the South Korean government put an end to rumors surrounding the closure of the local cryptocurrency trading market proposed by Justice Minister Park Sang-ki. The Blue House, the executive board of President Moon, pointed out in an official announcement that the government will never ban cryptocurrency trading and instead regulate the cryptocurrency sector with practical policies to protect investors and facilitate business growth.

Although the Financial Services Commission (FSC) and local authorities have moved away from discussions to ban trade, they have banned investors from funding country offices. The government's motivation to simply ban domestic IFAs remains unclear, but the FSC has hinted that it was to restrict speculation in the market by removing highly volatile assets such as tokens from the market.

As NCC reported, however, Hong's representative and a team of ten lawmakers challenged the government's ban on domestic ICOs. Hong's bill allows companies to manage country offices, as they receive approval from the Financial Services Commission and the Ministry of Information Sciences and Technologies. and communication.

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"The bill seeks to legalize ICOs under the supervision of the government.The main purpose (of the legislation) is to help remove the uncertainties faced by governments. blockchain-related businesses, "added Hong

Why are the authorities hurrying to legalize?

Earlier in the year, a source in the South Korean government told the Korea Times that the government would legalize ICOs as soon as tax policies regarding symbolic sales are approved. The report was released almost immediately after the FSC expressed concern over the intention of the country's largest technology conglomerate and the largest Bithumb cryptocurrency exchange to launch country offices outside the country. South Korea

"The financial authorities have discussed with the tax agency, the Ministry of Justice and other relevant government departments of the country to allow the ICO in Korea when certain conditions are together, "said a source. ]

If Kakao and Bithumb decide to launch ICOs in Switzerland with companies already established in the country, the blockchain sector of South Korea will lose opportunities of billions of dollars and will simply pass on to Switzerland, only because of the ban of domestic ICOs by the country.

Local analysts said that the government's hasty approach to legalizing domestic country offices results from its opposition to local businesses leading country offices to the outside of the country, which could result in significant losses for the cryptocurrency and blockchain market. Korea.

Featured image from Shutterstock.

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