This week, South Korean lawmakers observed the government’s confusing stance on distributed ledger applications, with blockchain technology promoted across the board and ICO projects facing strict crackdowns.
In response, Korean representatives have called for new, minimum guidelines on token issuers, according to Business Korea.
Lawmaker Pushes for ICO Regulations
A year after banning blockchain startups from issuing digital tokens on Korean soil, several of the country’s lawmakers have demanded the implementation and introduction of ICO rules on an expedited basis.
At a parliament meeting Aug. 29, lawmakers noted the government’s classification of ICOs as a harmful financial vehicle for retail investors, condemning lack of effort, definition and framework for unfair token practices and the broader digital asset class.
The absence of judiciary framework also resulted in several cryptocurrency fraud cases, which were classified as a “legal grey area.”
The country’s Bareunmirae Party also spoke at the meeting, taking a bullish stance on blockchain technology and citing the need for appropriate cryptocurrency regulations.
Jung Byung-guk, a party member, stated the political party had prepared a legislative proposal that defines the process and legality of cryptocurrency transactions for the government’s perusal.
Blockchain Meeting Soon
Byung-guk added the party is set to hold the “Global Blockchain and Cryptocurrency Conference” in October at the National Assembly, where party members intend to propel ICO guidelines and introduce investor protection acts.
Meanwhile, Byung-guk expressed his thoughts on Korea’s slow-moving ICO landscape:
“I am so upset to see the South Korean government sitting on its hands after prohibiting all types of ICOs. The National Assembly members have been also holding numerous meetings and seminars to revise and enact related laws but we haven’t found an answer yet.”
Byung-guk was quick to point out that ICOs and token issuers are steadily raising money in other parts of the world due to regulated, liberal governing ideologies.
While the lawmaker’s concerns are well-wished, the blockchain and cryptocurrency landscape suffers from infamous volatility and insecurity, courtesy of small-cap digital token market manipulation, wash-trading in prominent exchanges and numerous startup frauds.
Blockchain-Free Zones Discussed
While Byung-guk remains undeterred from the shady side of the growing industry, he shared his experiences with financially-advanced cryptocurrency cities abroad:
“I visited the U.K. and Finland, which have more advanced digital financing and start-up and venture ecosystem than South Korea, and talked with economic and financial regulators and experts, but they didn’t have a clear answer either.”
He also cited the British territory Gibraltar, calling it an “active” ICO ecosystem despite falling under U.K. jurisdiction.
Furthermore, the politician called for a “regulation free” blockchain zone or a cryptocurrency sandbox to test innovative ideas before launching them on a widespread basis.
In this regard, Jeju Island governor Won Hee-ryong has been the most vocal, pushing the Korean government to classify the sparsely-populated island state as a “blockchain hub” that allows token issuing.
To conclude, Byung-guk stated the October meeting would feature officials from global blockchain task forces and other government officials to issue a minimum decree for ICOs, keeping in mind their “own political and economic situations.”
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