South Korea’s National Policy Committee Calls for ICO Regulatory Framework Clarity

Min Byung-Doo, South Korea's National Policy Committee Chair has called for the creation of a regulatory framework for the legalization of initial coin offerings (ICOs).

The Committee Chair said with token sales becoming a global trend he does not want the country to ignore the issue or close the door to ICO completely, reports CoinDesk Korea.

South Korea, through Financial Services Commission, placed an embargo on ICOs pending the enactment of an enabling or prohibitory law.

Byung-Doo, who is a member of the country's governing Democratic party made the comments earlier Tuesday while answering questions from lawmakers at the 8th plenary session of the National Assembly.

He stressed that the regulatory framework will provide the needed backing for ICOs to work but regretted that the government appears to be reluctant to create the needed framework. According to him fraud, speculation and capital laundering must be strictly prohibited and that the crypto industry needs to self-regulate and introduce safety standards.

The lawmaker highlighted the economic advantages of token sales, saying that while there is a pessimistic view of cryptocurrencies in some quarters, many token projects are seen as having a viable future.

Byung-Doo said:

“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.”

This will not be the first call for cryptocurrency enabling laws in the country, even as several bills had been sent to the National Assembly’s Political Affairs Committee. However, with Byung-Doo, who is strongly proposing the regulation of ICOs rather than completely discard the idea, as the chairman of the committee, ICOs may just a regulation in the near future subject to a vote of the Politburo Committee at a future plenary session.

Further, while Prime Minister Lee Nak-yeon is a supporter of blockchain technology, he has said that the government banned ICOs over concerns about “side-effects and market overheating.”

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