South Korean lawmakers have engaged in an “extraordinary session” at the National Assembly in a bid to clear up the air about ICO ban and blockchain technology.
According to reports from a local news source, the latest meeting which had standing committees and political parties in attendance was held in order to discuss measures that will promote the blockchain and cryptocurrency industry.
Part of the discussion at the meeting was the prospect of creating a regulatory framework for Initial Coin offerings (ICOs) to enhance “investor protection.” The existence of such guidelines as is the case in Malta will lead to the reversal of the outright ban on ICOs which South Korea announced last year.
Also, because cybersecurity threats remain one of the biggest challenges faced by cryptocurrency exchanges, the parliament also charged the Ministry of Science and ICT to make a report that will reveal whether exchanges are ready to fight the ugly problem.
Industry experts will be pleased to know that the meeting also discussed last week’s proposal by the Governor of Korea’s Jeju Island to turn the region into a “blockchain hub.” If this proposal is granted, then blockchain projects can thrive in the country since they can organize ICOs.
ICO ban will be reserved soon
The country has lost more than it has gained after prohibiting all types of ICO in September, with many promising blockchain projects moving on to more favorable locations to set up their businesses.
It would be right to say that the South Korean government has realized that coming up with a clear definition of cryptocurrencies and a regulatory framework for trading and setting up ICOs will be a better option than locking anything that looks like “cryptocurrencies” out.
The report suggests that “discussions to allow ICOs are expected to gain momentum” in the coming weeks while a “task force” will be established to regulate the cryptocurrency trading industry.
This may be the first time that the government has held extensive talks on how to allow cryptocurrencies to exist and grow in South Korea and we hope that the final decisions will reflect positively on the markets.