Almost eight months after South Korea completely bans ICOs, the National Assembly calls for development of legislature rules in order to lift this ban.
The South Korean National Assembly recommended to lift the ban on initial coin offerings (ICOs) and to develop and adopt legal provisions to protect investors’ rights, the report of the special committee of the Assembly on the Fourth Industrial Revolution reads.
South Korean authorities should accelerate discussions about legislature rules for ICOs, the authors of the report believe. The Committee also called on the national government to form a task force, including government officials and private experts, who will help develop legislature norms that increase the transparency of cryptocurrency trade and establish a healthy atmosphere in the new industry.
The ban on ICOs in South Korea and China led only to the exodus of blockchain companies to more friendly jurisdictions abroad, such as Singapore and Switzerland, where ICO is not prohibited, the report says.
The committee even accused the South Korean government of neglecting its duty to help the industry development.
For the first time, rumors about possible lifting of the ban on ICOs in South Korea started to circulate in early May, when a group of legislators led by a representative of the Democratic Party anounced their efforts on drafting a bill that would legalize ICOs in the country.
“The bill is aimed at legalizing ICOs under the government’s supervision[…],” the representative of the group said. “The primary goal of the legislation is helping remove uncertainties facing blockchain-related businesses”.