South Korea Needs To Find Way To Legalize ICOs Says National Policy Chief
Min Byung Doo, Korea's National Policy Committee chairman, has said that the country's authorities should legalize initial coin offerings (ICOs).
Min Byung Doo, Korea’s National Policy Committee chairman, has said that the country’s authorities should legalize initial coin offerings (ICOs), reports Coindesk Korea.
Regulation the future of the Korean cryptocurrency industry
Min Byung Doo maintained that a proper regulatory framework should first be put in place before allowing for legal ICOs and other financial activities.
According to the report, he also believes that token sales were gradually becoming accepted at the global level, and the country needs to re-evaluate its ban.
“I do not want the ICO door closed completely like it is now … The state should not ignore [the issue].”
Recent successes concerning initial coin offerings haven’t escaped the ruling party official. And as these successes show, a well organized and executed ICO can be colossal revenue streams for new companies. He said of these:
“We can see that the flow of investment is clearly changing. The ICO [has done better] compared to Venture/Angel funding. The ICO has raised $ 1.7bn [for] Telegram and $ 4bn for Block.one. It is getting bigger and bigger.”
According to the lawmaker, a properly regulated environment can highlight the economic advantages that token sales have. Despite the country’s current cynical view, and especially the risk of fraud, Min pointed out that there are chances some projects could gain considerably from ICOs.
He added that the government had the power to look into the issue by having regulations in place to create an atmosphere of trust. He feels that the government ignoring the issue, showing a lot of reluctance in enacting new rules.
The Financial Services Commission, Korea’s financial watchdog, imposed a ban on all ICOs and related activities in September 2017. Since then, the country has yet to enact any laws that regulate or prohibit the activity, the local news outlet reported.
Korea warming up to crypto
Min is a member of Korea’s governing Democratic Party, and his comments are part of the answers he gave during the National Assembly’s 8th session. His remarks have attracted support from some legislators, many of whom posed questions to the police chief.
Even though he has called for a lifting of the ban, Min wasn’t trying to push for a market that is devoid of oversight, emphasizing that financial crimes including fraud, speculation and money laundering “must be strictly prohibited.”
In his view, Min wants to see the cryptocurrency industry become self-regulating; with ICOs providing a clear roadmap and publishing an analysis of their whitepaper. Crypto exchanges and platforms should also introduce safety standards and a rating system.
After the September 2017 ban on ICOs, the National Assembly saw the introduction of several bills in the House. None has resulted in a law regarding token sales, but experts home Min’s comments may signal change is near.
Any legislation related to cryptocurrencies fall under the jurisdiction of the country’s Political Affairs Committee. Min, as the Committee’s chairman, may have fast-tracked the issue of developing a clear regulatory framework for crypto and initial coin offerings.
Min also reportedly told the country’s science chief that it would be better to let the government, the National Assembly, and Korea’s blockchain association work on a way forward.
He feels that what the country needs most is for the three bodies to constitute a working group that will spearhead efforts against effects like fraud, speculation, and money laundering. That would help in the development of the block-chain industry.