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South Korea’s National Assembly proposes lifting ICO ban

The South Korean National Assembly has officially proposed lifting the ban on domestic initial coin offerings (ICOs), Business Korea reported.

In September 2017, the Financial Services Commission (FSC), a central government body responsible for financial policy and financial supervision in South Korea, imposed a ban on all ICO related activities in the country.

Following the ban, domestic blockchain startups started issuing their cryptocurrency in foreign countries including Singapore and Switzerland. For instance, ICON (ICX), which was being touted as the ‘Korean version of Ethereum’, was issued in Switzerland.

In a recent meeting held on May 28, a special committee on the fourth industrial revolution under the National Assembly assessed the activity in this sector over the past six months. Based on its observation, it held the administration accountable for neglecting its duty towards encouraging blockchain innovation in the country.

According to the report, the committee finalized the legislative and policy proposal of recommendation on the same day. It has proposed allowing ICOs under the conditions of investor protection. In addition, it also called upon the government to set up a task force to facilitate transparent cryptocurrency trading.

“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 provide industrial support. We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee,” the committee said.

Earlier this year, the FSC also banned cryptocurrency trading using anonymous accounts in the country in a bid to circumvent cryptocurrency-related money laundering activities.

By Shampa Mani
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