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A legislator group led by a politician from the ruling political party in Korea drafts a bill to legalize the launch new cryptocurrences and ICOs in the country.
According to a report by the Korea Times, the Hong Eui-rak representative of the Democratic Party of Korea, the ruling political camp, directs the prosecution – through the parliament – to challenge the ban by the government initial offers of coins (ICO) in September 2017.
Hong has the support of 10 other legislators of the Korean parliament and aims to have a final version of the bill to be submitted by the end of the year.
At a forum on cryptocurrency and blockchain technology at the National Assembly in Seoul on Wednesday, Hong revealed a joint study between the Korea International Trade Association (KITA), an organization Korean commercial non-profit and its own office. was the basis behind the bill.
Hong insists that the bill to legalize the new ICO will be subject to direct examination of the government.
The legislator stated:
"The bill aims to legalize ICOs under the supervision of the government […] The main objective (of the legislation is to help remove the uncertainties facing the related companies to the blockchain. "
In addition, the report suggests that the bill favors ICOs from public bodies and research centers that are "committed to promoting and developing blockchain technology". Government agencies, including the Financial Services Commission (FSC), the Korean Financial Regulator and the Ministry of Information and Communication Science and Technology (ICT), will have the power to oversee these IFAs, according to the bill.
Taking the example of the general ban imposed by China on all ICOs, the Financial Supervisory Service (FSS) of South Korea, the financial authority of the FSC, imposed its ban on end of September to protect domestic investors against fraud.
"We are concerned about the negative effects such as the increased risk of fraud," said FSS Vice President Kim Yong-bum at the time. "The OIC will be banned in all forms."
Nevertheless, regulators have since considered the inversion of the ban in a change of tact such restrictive restraints. Korea is one of the most active encryption markets in the world and has seen crypto-currencies penetrate Korean society among everyday adopters and retail investors.
Indeed, the growing importance of cryptocurrencies was addressed in the National Assembly yesterday by President Chung Sye-kyun.
Calling on lawmakers to remove political barriers and curb their advent, Chung said:
"Blockchain and cryptos can be used in different public sectors for good causes, and given their potential, we must work to help reduce the political uncertainties they face."
Image from Shutterstock.
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