Min Byung-Doo, South Korean National Policy Chief has urged officials to regulate ICO market in the country in order to "build trust." He added that "fraud, speculation and capital laundering must be strictly prohibited."
3 October 2018 – The head of South Korean National Policy Committee has reportedly called for the legalization of Initial Coin Offerings (ICOs), arguing that the regulatory framework is needed.
ICOs should be regulated to create trust
As per some of the online reports, Min Byung-Doo, a member of the South Korean governing Democratic party, stated that with token sales becoming a global trend, "I do not want the ICO door closed completely ... The state should not ignore [the issue]." The policy chief delivered the speech earlier during the 8th plenary session of the National Assembly. Lawmakers asked some questions in relation to the speech.
Min highlighted that ICOs should also be regulated in order to create trust in this sector. Yet, the official pointed to resistance on the government’s side to establish proper rules as a primary obstacle. He explained that "fraud, speculation and capital laundering must be strictly prohibited." The cryptocurrency industry would need to self-regulate and set out safety standards as well, Min argued.
The Financial Services Commission, the country’s financial watchdog, has earlier banned ICOs across the country. However, the law has not yet been enacted, according to one of the online reports.
Will South Korea Adopt Positive ICO Regulations?
The lawmaker highlighted the economic advantages of token sales, adding that while there is quite a pessimistic view of cryptocurrencies in some quarters, lots of the projects are regarded as quite prospective. Min added:
"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."
A number of bills that aimed to provide a legal framework for cryptocurrencies have already been proposed to the National Assembly in South Korea. With Min being a chairman of the committee, the chances of positive ICOs regulations in South Korea might have just risen. Yet, any legal measures must pass a voting process of the Politburo Committee at a future plenary session.
Min has also added:
"Let the government, the National Assembly and the blockchain association quickly create a working group to block fraud, speculation, money laundering and develop the block-chain industry."
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