S Korea: Politicians in Fresh Bid for ICO Reform

Ban Blockchain ICO Regulation South Korea

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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June 26, 2023

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The South Korean government is preparing to respond to renewed calls from opposition MPs urging the executive to make initial coin offering (ICO) reforms.

Minister of Science and ICT You Young Min stated that he intended to consult with the regulatory Financial Supervisory Commission before making an official response.

Per media outlet Financial News, the government may be willing to consider the idea of creating a task force comprising at least in part of private sector experts who could be tasked with allowing ICOs – with a proviso that should be some means of protecting investors from bogus or fraudulent investments.

Politicians from a number of parties have called for new ICO laws on a number of occasions since the government issued its ban in September last year.

Last week, Song Hee-kyung, MP for Busan and a member of the Liberty Korea Party (the National Assembly’s largest opposition party), called on the Ministry of Science and ICT to review the ICO ban. Song’s views were echoed by MP Kim Kyung-jin of the Democracy and Peace Party, a prominent member of the National Assembly’s Science and IT committee.

MPs also want legal clarification over the island province of Jeju’s bid to allow ICOs on its territory. As previously reported on Cryptonews.com, Jeju’s pro-crypto governor is hoping to use the territory’s special legal status to legalize ICOs, and create a regional hub for blockchain startups.

Also, the National Assembly’s Legislation Bureau has called on the ministry to clarify the legal nature of the ICO ban – possibly in response to lawyers who have been looking for ways around the ban.

MP Jung Byung-guk of the Assembly’s third biggest party, Bareunmirae, is set to call a special committee debate on “ICO Guidelines.” Jung hopes the debate will be tabled with the Industry 4.0 committee before the month’s end.

Per Sisa Magazine, a special National Assembly committee will convene to discuss blockchain technology-related matters on August 30 – with ICO regulations likely to be on the agenda again.