Min Byung-Doo, chairman of South Korea’s National Policy Committee, believes that the country should not ignore the growing ICO trend, industry website Coindesk has reported.
Just over a year ago, South Korea’s financial watchdog, the Financial Services Commission (FSC), issued a complete ban on initial coin offerings, a move that came shortly after similar measures were imposed in China. The two countries’ example has not been widely followed by regulators across the globe, as most countries, including the UK, have been looking for ways to regulate, rather than outright ban, the sometimes controversial fund-raising mechanism. Now South Korea’s top policymaker has argued that the country should adopt a similar approach.
"I do not want the ICO door closed completely ... The state should not ignore [the issue],” Coindesk Korea quoted Min as saying said on Tuesday during 8th plenary session of the National Assembly.
Min also emphasised on the importance of regulation for creating trust in the ICO industry, while pointing to the government’s reluctance to create new rules as being a major issue. According to Min, “fraud, speculation and capital laundering must be strictly prohibited”, but the crypto sector also need to step up its efforts to self-regulate and introduce safety standards.
Min also cited some of the biggest ICO success stories to illustrate the industry’s growing potential.
“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,” Min said, as quoted by Coindesk.
As noted by Coindesk, several bills aimed at providing a legal framework for cryptocurrencies have already been proposed to the National Assembly. Such legislation comes under the jurisdiction of the Political Affairs Committee, the online publication informs.