In a recent speech presented to the National Assembly, Chairman of South Korea’s National Policy Committee Min Byung-Doo urged Korean regulators to legalize initial coin offerings . Despite being the home of one of the biggest cryptocurrency markets around the world and a hub for blockhain innovation, the South Korean government imposed a ban on all ICOs in September of recently. Federal officials have in addition expressed concern surrounding cryptocurrency exchanges, deeming that without stricter regulation, they can be a danger for investors. Min told the Korean National Assembly immediately that he would not want italy to close it on ICOs completely.
Min further stated that ICOs have become an increasingly popular trend, in fact it is the responsibility of the govt to support national improve the space through sensible regulation.
“Regulation is not bad. Regulation is necessary. It is the finest to legitimize sales and allow investors to build up trust for the cryptocurrency market,” Min said.
The Financial Services Commission passed South Korea’s ICO ban in September 2019, yet the bill has yet to completely go into effect.
Min acknowledged in his speech well-known dangers surrounding ICOs that resulted in the ban. He cites fraud, speculation, and capital laundering as practices that really must be strictly prohibited, noting that ICO white paper analysis program, that comes with an ICO safety rating system, might help protect investors. Min urged the National Assembly to name that ICOs and various other crowdfunding capital-raising initiatives are starting to gain increasing traction.
“You 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 can be getting larger and larger.”
In a panel discussion in the Korean government’s science chief, Min later stated,?”Let the govt, the National Assembly also, the blockchain association immediately form a functional group to block fraud, money laundering, speculation, and develop the block-chain industry.”