The National Assembly Standing Committee of South Korea proposed the cancellation of the ban on holding ICOs. This became known at the general meeting of the Special Committee of the Fourth Industrial Revolution of the National Assembly, held on Monday, May 28. It should be recalled that in September 2017, the Financial Supervision Service (FSS) of South Korea introduced a complete ban on the primary tokens placement.
The main reason for such a proposal was the large churn of domestic crypto companies into Singapore and Switzerland. Moreover, investors are also concerned about the risks associated with fraud. Therefore, the National Assembly Committee suggests regulators to reconsider their policies and approaches to legalizing and regulating cryptocurrencies and blockchain technology.
"The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently support industrial support. We will also establish a legal basis for the cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee," the special committee on the fourth industrial revolution said.
Canceling of the ban on ICOs holding would mean that start-ups in South Korea will again be able to engage in activities related to the crypto trading and the blockchain technology. There are many advantages of removing the ban, but it is still not known exactly when the softening of laws in the country will come into force. Perhaps, South Korea will offer regulatory measures that not only legalize the ICO, but also make investing in them safer.