An unexpected move taken by South Korean lawmakers has shaken the crypto market. Apparently, they are working on a bill that would legalize some Initial Coin Offerings, which the country banned back in 2017. During the last months, companies from South Korea moved abroad to start Initial Coin Offerings.
Lawmakers to Legalize ICOs
Back in September/October 2017, South Korea decided to ban ICOs, following China’s decision. Both Asian countries wanted to have control over the crypto market and the tokens created by companies that wanted to raise funds. But it has created several problems. Enterprises in these countries decided to move their operations abroad in order to start gathering funds for their projects.
According to the Korea Times, 10 lawmakers are working in order to present a bill that would challenge the ICO ban imposed by the government last year.
Rep. Hong Eui-rak of the ruling Democratic Party of Korea, said during a forum about ICOs and blockchain technology:
“The bill is aimed at legalizing ICOs under the government’s supervision. The primary goal (of the legislation) is helping remove uncertainties facing blockchain-related businesses.”
Of course, the bill will not rule to completely open the market for ICOs. The intention is to allow ICOs initiated by public organizations and research centres that are committed to promoting and developing distributed ledger technology. At the same time, these ICOs will be subject to supervision by the Financial Services Commission and the Ministry of Science and ICT.
This is the first step before allowing all compliant ICOs to operate in the Asian country. The government’s intention with the ICO ban was to create proper regulations before it was too late.
Initial Coin Offerings have been used by enterprises all over the world to get the necessary financing for their projects. It was very easy to start an ICO, and gather funds for an expansion or launching a new service or product. At the same time, some ICOs were totally scams and some of them were completely fake. Investors who bet on them lost all their investment and did not hear from the team members never again.