According to a report, the chairman of the National Policy Committee of South Korea, Min Byung-Doo, has stood in favor of the legalization of initial coin offerings (ICOs) during the 8th plenary session of the National Assembly.
Min Byung-Doo is a member of Korea’s governing Democratic party and said that a regulatory framework should be developed, “I do not want the ICO door closed completely … The state should not ignore [the issue].”
Min believes that regulation is vital, and this would bring legitimacy to the industry. However, he also pointed the reluctance on the government’s part to frame new rules as an important issue.
He added that “Regulation is not bad. Regulation is necessary, it is the only way to legitimize the market and allow investors to build trust towards the cryptocurrency market.”
Min highlighted the accolades of the crowdfunding trend globally and said that ICO legalization could sort out the prevailing issues.
“We can see that the flow of investment is clearly changing compared to ICO and angel fundraising. The ICO has raised $1.7 billion for Telegram and $4 billion for Block.One, it is getting bigger and bigger”, he said.
What is the position of South Korea?
It is worth mentioning here that South Korea has been skeptical of cryptocurrencies and their underlying technology. This is perhaps why the Financial Services Commission which is the financial watchdog of the country prohibited the domestic participation in ICOs.
So far, a lot of bills which seek to provide a legal framework for cryptocurrencies have been proposed to the National Assembly in South Korea. This legislation comes under the jurisdiction of the Political Affairs Committee. Min is the chairman of the committee who is strongly in favor of the legalization of ICOs. Thus, the chances of regulations getting passed in the near future have increased immensely.
However, it is worth mentioning here that to pass such regulations, the vote of the Politburo Committee at a plenary session is a must.
Lee Nak-yeon, the Prime Minister of South Korea, is a supporter of blockchain as well, but he has often expressed his concerns about “side-effects and market overheating.”
It would be interesting to see how things unfold moving ahead, but if ICOs get legalized in South Korea, it would definitely be big news for the cryptocurrency industry, and blockchain on the whole.