South Korea plans to ban the Initial Coin Offering this year
A bill that would interdict the launch of any ICO is likely to receive approval of the South Korean government and the National Assembly this year.
The legislator became the representative of the Democratic Party of Korea, Hong Eui-rak, being accompanied by ten more members. They mentioned that the bill will be ready in 2018 but didn’t reveal the date.
“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,” stated Hong.
The bill does not represent a general ban. Those who will be able forward to launch ICOs will be institutions from public sectors and research centers.
The bill will be dedicated only to future launches of ICO.
“Blockchain and cryptos can be used in various public sectors for good causes. Given their potential, we need to work to help reduce the political uncertainties they face,” stated Chung Sye-kyun, the spokesperson of the National Assembly.
South Korea has been an important player for the crypto sector. Starting in 2018, the country has begun to dismantle many of the crypto activities, but also to regulate the existing ones. The announcement of the ICO ban has urged some businesses to look for foreign investors, thus to eliminate any source of income that would be attributed to the South Korean budget. A well-known example is the largest cryptocurrency exchange in South Korea, Bithumb, which chose to move to Singapore.