South Korea’s stance on cryptocurrency has been a continued source of uncertainty. While the progressive far-east nation is one of the world’s most important markets for Bitcoin, the government ban on ICOs last year has cast a lasting shadow of doubt over its intentions.
In an attempt to forge a way forward, the South Korean National Assembly has drawn up an official proposal to permit domestic ICOs. This could mean a complete reversal of the outright ban currently in place.
Uncertainty Looms Within the S.Korean Crypto Market
Since banning ICOs, the South Korean government has still not delivered any clarification regarding the future of cryptocurrency in the country. Not only has this served to fuel further market FUD but it also means that South Korea is potentially leaving a lot of money on the table, as national blockchain companies are forced to look elsewhere.
Many South Korean teams have relocated to cryptocurrency-friendly destinations like Switzerland and Singapore. However, investors back home are still continually subjected to fraudulent imposters and scams. Since the government ban, there has been no action taken nor any decisive statements, leading to the National Assembly drafting the proposal to permit domestic ICOs.
According to Business Korea, The National Assembly has put forth the suggestion that domestic ICOs should be made legal under certain conditions that ensure investor protection, such as KYC and AML. Their proposal was announced on May 28 during the Special Committee Meeting of the Fourth Industrial Revolution.
The Committee stated,
“We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order. It is also Imperative that we Establish a Legal basis for digital asset trading, including permissions for icos.”
The committee also vocalized their dissatisfaction with the government’s lack of progress with regards to blockchain technology in general and stated that the expansion of blockchain and its applications should be a top priority for regulators.
International Eyes Look On
The possibility of South Korea reversing last September’s ban on ICOs has sparked great interest from the international crypto community at large. Many blockchain companies, as well as cryptocurrency investors, are now eagerly awaiting to see how the ongoing dialogue between the National Assembly and the South Korean government will develop.