Very recently, South Korea have surfaced with visions of new cryptocurrency regulation, in an attempt to keep up with the on-going trend of the blockchain revolution in the area. With Japan establishing itself as a real hub for bustling cryptocurrency engagement, South Korea have really been peer pressured into ensuring their regulations and their stance can allow cryptocurrencies to flourish. Of course, this hasn’t come without issues and indeed, South Korea have had a bout of bad press concerning cryptocurrency exchanges, with this in mind however, authorities over there seem intent on ensuring that cryptocurrency can one day flourish in the country.
According to CCN:
“Nearly eight months after a blanket ban on initial coin offerings (ICOs), South Korea’s National Assembly has reportedly made an official recommendation to allow domestic ICOs in the country. The 300-member national legislature has made an official proposal to allow domestic ICOs in the country by preparing and adhering to relevant investor protection provisions.”
“The National Assembly’s special committee on the fourth industrial revolution even accused the government of ‘neglecting its duty’ in responding to the blockchain sector. The much-publicized ICO bans by Korea and China before it has seen an exodus of domestic companies going to friendlier jurisdictions in Singapore and Switzerland to conduct ICOs.”
See the full report by CCN for yourself, here-
What will this mean?
Well, as I have mentioned South Korea are in the midst of creating new regulations through which the cryptocurrency industry can flourish. By removing ICO’s, more companies and teams will be able to fund their own start-ups in South Korea and moreover, South Korean citizens will have access to the trading potential that exists within these. This is an exciting prospect as overall, it suggests that South Korea, whilst wary about risk, are finally looking towards new blockchain technologies to help drive the industry forward, technologies that need the initial investment from an ICO in order to move forward.
As it stands, we do not have a full date for when this might take place, overall though, reports are suggesting that this new legalisation will take foot soon enough. As a result of this, we should very well expect new regulations and conditions to follow. I can’t see South Korea totally legalising ICO’s just like that, instead, a drill will be drafted that imposes some regulation on the industry. This isn’t necessarily a bad thing mind, it should however ensure that ICO’s are carried out responsibly and that ultimately, traders and investors are well protected.
This could be the start of the crypto-revolution in South Korea.