The South Korea National Assembly has started an initiative to lift the ban on Initial coin Offerings that was established on last year’s September as a provision for protecting investors from possible scams and misleading offers, according to a report of BusinessKorea. This would be a measure taken to incentivize local ICO businesses and avoid the capital exodus to other countries.
The Committee that would be spearheading this push is the Committee for the fourth industrial revolution, a special that works under the assistance of the National Assembly to examine the tech development of the country and how can it be leveraged to improve the capacity and efficiency of the industrial platform.
The Committee issued the said recommendation while heavily criticising the regulators and government officials of limiting blockchain growth with their actions. They also made a public stride for improving transparency in cryptocurrency trading. They 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”
The committee also states that they think that a regulatory framework for Initial Coin Offerings is a must, to avoid possible investor fraud by keeping local businesses under check. The committee stated:
“WE WILL ESTABLISH A LEGAL BASIS FOR CRYPTOCURRENCY TRADING, INCLUDING PERMISSION OF ICOS, THROUGH THE NATIONAL ASSEMBLY STANDING COMMITTEE”
According to some experts, this committee action is an answer to blockchain businesses leaving for other latitudes to do business there; this has happened before in other countries where there is a ban or strong restrictive regulations. Japan has caused exchanges like Binance, one of the biggest exchanges in the whole world, to fled to other countries because of strong regulations. This would mark a change of heart in the South Korean stance on cryptocurrencies, that has restricted anonymous trading and investigated several exchanges in the past.