The chairman of Korea’s National Policy Committee has called for the legalization for the legalization of Initial Coin Offering (ICO), given that a regulatory framework is put in place.
As per a report, Mr. Min Byung-Doo, who is a member of the nation’s governing Democratic party, stated that the token sales are becoming a global trend, “I do not want the ICO door closed completely. The state should not ignore the issue.”
The policy chief Mr. Min Byung-Doo spoke earlier Tuesday during the 8th plenary session of National Assembly, at which lawmakers posed questions to the administration.
To build trust in the industry, ICOs should further be regulated, Mr. Min Byung-Doo stressed. Although, the official pointed to reluctance on the part of the government to draw up new rules as a common issue.
In particular, he stated that ‘fraud, capital laundering, and speculation must be strictly banned’ and the digital currency industry would need to be self-regulated and present safety standards as well.
As per the report, the nation’s Financial Service Commission declared a ban on ICOs in September 2017; however, the law has not yet been enacted.
The lawmakers pointed to the economic advantages of token sales, stating that while there is a pessimistic view of digital currencies in some quarters, numerous token projects are viewed as having a viable future.
Raising the vast sums of money is raised in some token sales, Mr. Min Byung-Doo stated:
“We can notice that the flow of investment is shifting compared to ICO and angel fundraising. The ICO has boosted $1.7 billion for Telegram and $4 billion for Block. One, It is becoming bigger and bigger.”
As reported earlier, numerous bills seeking to give a legal framework for digital currencies have now been proposed to the National Assembly in South Korea, with such legislation coming under the jurisdiction of the Political Affairs Committee.
With Mr. Min Byung-Doo being the chairman has now firmly expressed his belief that ICOs should be permitted in law, the odds of regulation being passed shortly may have just increased. Although, any legal measures must give a vote of the Politburo Committee at a future plenary session.
Moreover, while Prime Minister Mr.Lee Nak-yeon is a follower of blockchain tech., he has stated that the government prohibited ICOs over concerns about “side-effects and market overheating.”
In statements today, Mr. Min Byung-Doo told a panel discussion with the Korean government’s science chief, “Let the government, the National Assembly and the blockchain association immediately form a working group to block fraud, money laundering, speculation, and develop the block-chain industry.”