South Korea and Crypto Move

It has been a year since the last ban on ICOs in September. And now there are more than four bills in assembly. The recent bill proposes an amendment to the Electronic Financial Transaction Act. This would unban and regulate the ICOs as well as cryptocurrencies.

Representative Ha Tae-kyung and ten lawmakers are said to be working on a bill that would provide basic definitions of ICOs,cryptocurrencies and crypt-related business such as a trading, brokerage etc.

Min Byung-Doo stated at forum saying,

“The National Policy Committee is planning to draft a bill [on] ICOs and blockchain and hold a public hearing on it in November. We will urge the government to create a working group. The group is to be participated in by related associations and organizations to exchange information and solve problems,”

Asia Economy TV explained, ICOs must comply to certain standards and obtain approvals from Financial Services Commission (FSC) before opening an ICO.

ICO Ban in South Korea

Korea has remained on the forefront when it comes to digital assets. But the recent hacks on exchanges and ICO scams all around, has made lawmakers worry which resulted in the ban.

At the National Assembly meeting on Tuesday the FSC was questioned about the ICO policy by Democratic leader, Min Byung-doo. The FSC Chairman, Choi Jong-ku replied saying, “We are investigating the side effects of initial coin offerings (ICOs) from cases in overseas countries.”

The Korean Blockchain Association unveiled self-regulatory guidelines for crypto exchanges and ICOs. The Chairman, Chin Dae-Ji notes that they will permit ICOs only after scrutiny of key materials. After reviewing its whitepaper, project feasibility and other matters thoroughly. And the whitepaper must be transparent and collect funds from transparent investors only.

The self-regulatory guidelines also discuss the regulations for crypto exchanges, its capital requirements, listing criteria, and AML compliance. South Korea is finally releasing a sigh of relief with bills passed to unfreeze the earlier bans. This might help the country in getting back in the revolution of Blockchain technology, ICOs, Cryptocurrencies etc.

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