Earlier this year, it was reported that South Korea was going to allow initial coin offerings once again under new regulations, but nothing has happened since that announcement. Today, however, news about this topic was released.
In a post by BusinessKorea, it was revealed that The National Assembly has made an official proposal to unban ICOs in Korea. The proposal comes not only because of a wish from the citizens but also because tech startups are moving to countries like Switzerland to conduct their ICO instead. This equates to lost revenue for Korea and more importantly diminishes the potential of being a forerunner in the world of blockchain technology and cryptocurrency.
One of the main reasons why Korea banned ICOs in the first place, is because of the lack of regulation which has caused many investors to be scammed without any ability to reclaim losses. Other countries do, however, have regulations and guidelines to protect participants. This is exactly what The National Assembly wants the Korean government to release, regulation and guidelines for initial coin offerings.
It’s always difficult to find a balance between regulation and freedom, as companies need room to experiment and innovate their projects, but are not always able to if regulation is too strict. This might be why Korea still hasn’t released their own guidelines. Hopefully, we’ll see a positive official response from the Korean government soon, as this proposal doesn’t guarantee anything, but definitely is a step in the right direction.