South Korean Lawmakers Examine ICO and Blockchain Legislation

The South Korean National Assembly is holding an extraordinary session to examine ICO and blockchain legislation in the country.

Details of the Session

On August 20, the South Korean National Assembly held a brief, extraordinary session to discuss the promotion of the blockchain and cryptocurrency industries and to create guidelines on ICOs. The Jeju Island blockchain proposal was also a part of the deliberations.

Two South Korean lawmakers—Kim Kyung-jin of the Democracy and Peace Party and Song Hee-kyung of the Liberty Korea Party—have asked the Ministry of Science and ICT to prepare an ICO guideline for investor protection. In response, the ministry will prepare a report on the preparedness of South Korean cryptocurrency exchanges against cybersecurity threats.

Discussions to allow ICOs will most likely gain momentum along with steps to protect investors. A task force that will ensure order in virtual currency trading will also be established.

According to an industry insider speaking on the government’s ban and current National Assembly discussions,

“The South Korean government prohibited all types of ICO in September last year and has come up with no related policy since then. The entire industry is paying much attention to how its stance will change through various discussions in the National Assembly.”

On August 21, the Bareunmirae Party discussed blockchain-based political parties. The focus was on lower-cost and higher-efficiency political party structures based on blockchain technology. The discussion was attended by some industrial and academic experts, including Blocko Director Kim Jong-hwan. Jung Byung-kuk, a Bareunmirae Party lawmaker, also prepared a debate about ICO guidelines.

Suggested Reading : Learn more about blockchain technology in our beginner’s guide.

Cryptocurrency Regulations in South Korea

In September 2017, South Korea’s Financial Services Commission decided to ban all forms of cryptocurrency-based money raising activity. According to the country’s regulatory body, there were concerns about the risks and fraudulent activities associated with ICOs.

Recently, the government of South Korea excluded cryptocurrency brokers and blockchain startups from the venture firms list, which provoked an outcry from the industry. In June 2018, the country’s top financial regulator outlined new anti-money laundering (AML) guidelines for digital currencies. In a bid to protect investors, South Korea’s financial regulators urged lawmakers to pass virtual currency legislation.