As one of the greatest economies in the world, South Korea has done much in these past 60 years transforming itself and propelling into the a future of even bigger growth.
There were many rumors going around about the South Korean government shutting down a local crypto exchange in the past, which was a proposal Park Sang-Ki, the country’s minister for justice. These rumors where fortunately untrue and ended in 2017 when the office of President Moon, stated that no ban will be be placed on cryptocurrency, and rather than ban crypto trading, regulations protecting investors will be put in place to support business growth.
But there was another side of the story. Domestic investors were banned from funding domestic ICO’s by the South Korean local authorities and The Financial Services Commission even thought they did not ban crypto trading.
Now there is a new dawn coming from the National Assembly which is comprised of 300 member unicameral national legislature and had officially proposed to allow domestic ICO’s, and in that regard lifting the ban imposed by the government in September last year. Many companies that did not saw a clear guidance, had left the country and have launched their token sales abroad.
“We need to forma a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order. We will also establish a legal basis for cryptocurrency trading, including permission of ICO’s through the National Assembly Standing Committee.” was stated in a meeting of the committee on May 28.
Due to the ban of ICO’s that the country had imposed, their cryptocurrency industry will miss out on a great number of opportunities for continued development, especially because their biggest and key companies like Upbit and Bithumb have started made their moves to lunch their ICO’s in Switzerland. Moves like these will transfer all and every development benefit out of South Korea that meant very much for their economy.
The committee had also pointed this out stating:
“With the government failing to present any guidelines for ICO’s, domestic blockchain companies are going to Singapore and Switzerland to do an ICO and pay unnecessary expenses.”
The Seoul’s decision on the ban had met with a hign number of backslashes when it had impemented as a law and has trigered a fear of a total cryptocurrency ban. The emerging fear by the public have resulted in a massive protests and calls for the governments ministers to resign in January this year.
Hong Kong and Singapore have emerged as the heavens for token sales. As Anson Zeall, the chairman of the Association of Cryptocurrency Enterprises and Startups Singapore, “there has been a lot of ICO activity since September last year.”
The group of lawmakers that is led by a politician, the representative of the Democratic party of Korea, Hong Eui-rak had been working very hard to push out the ban. He has support of 10 other lawmakers in the Korean parlament and plans to have the final draft before the end of the year.
“The bill is aimed at legalizing ICO’s under the government’s supervision. The primary goal of the legislation is helping remove uncertainties facing blockchain-related businesses.”