Constitutional Appeal Expected to Be Filed by Presto Blockchain Startup Against South Korea’s ICO Ban
Every country is handling the regulation of cryptocurrencies in a different way. Some of them have been incredibly welcoming, providing regulation that clearly describes the proper usage and issuance of digital assets, while others have decided to completely ban cryptocurrencies.
However, there are many countries, like South Korea, that allow cryptocurrencies, but their ban is on the use of initial coin offerings (ICOs). A blockchain startup in the country named Presto seems to be planning to appeal this ban with the South Korean government, based on Sedaily’s report on December 6th.
According to the Presto website, their service provides a “total solution to development teams from website building to token issuing.” Their hope to appeal comes after their attempt to run a Decentralized Autonomous Organization-based Initial Coin Offering (DAICO) for the first time.
Presently, DAICOs are used to make the use of ICOs better in fundraising, adding on features of Decentralized Autonomous Organizations (DAOs). By doing so, smart contracts are employed for refunds, in the event that the contributor no longer has faith in the project that they invest in. Realistically, this is a safe way to ensure that an ICO is legitimate, and to protect investors from losing their funds.
The ban was issued last year in September. Now, Presto CEO Kang Kyung-Won said that their project has been hitting a snag as the government and the National Assembly have done nothing over the last one year since the government’s blanket ban on ICOs.” Then, he commented on his plan to file a constitutional appeal, saying,
“We will ask the court to rule on the ICO ban and the legislature’s nonfeasance.”
In the Sedaily report, the CEO believes that this ban is imposing on “people’s freedom of occupation and property and equal rights and scientist’s basic rights.” With how quickly technological development has been advancing, Kyung-Won said, “Such unconstitutional and pre-modern measures as the ICO ban should not exist any longer.”
The stance that South Korea has ultimately decided to take on the regulation of cryptocurrency is much different from countries like Malta, who has been called the “Blockchain Island.” They’ve already approved three bills in their country that have complete clarity over the way that cryptocurrency is governed. They are also expanding on artificial intelligence (AI) strategy in their work, hoping to “explore a citizenship test for robots in the process of drafting new regulation for AI.”
It is worth considering that the daily trading volume at South Korea has exceeded that of Malta in their crypto exchanges in November, based on a report from CryptoCompare. The document says that the causes of the change are due to “competitions, trans-fee mining, and rebate programs.”