Crypto Market Development: South Korea’s National Policy Committee Chair Calls For ICO Legalization
- A member of South Korea’s governing Democratic party and the chairman of Korea’s National Policy Committee, Min Byung-Doo, is urging to ease the current regulations on Initial Coin Offerings (ICOs).
- Min Byung-Doo wants to introduce necessary regulatory framework, allowing ICOs in the country.
Allow ICOs In South Korea
The South Korean National Policy Committee Chief, Min Byung-Doo, is calling for a regulatory framework to be explored. This would be to allow for Initial Coin Offerings (ICOs) to take place within the country. He stated that the current prohibiting of ICOs weakens the industry’s competitiveness appeal with foreign markets. Further boldly adding, this would be preventing growth.
In his statement at to lawmakers, Byung-Doo said, “We can see that the flow of investment is clearly changing compared to ICO and angel fundraising. The ICO has raised $1.7 billion for Telegram and $4 billion for Block.One, it is getting bigger and bigger.”
Further in the statement, Min Byung-Doo said, “Let the government, the National Assembly and the blockchain association quickly create a working group to block fraud, speculation, money laundering and develop the block-chain industry,”. However, he acknowledged the government’s reluctance to create the needed framework.
In September 2017, the Financial Services Commission in South Korea announced a ban on ICOs. The law has not yet been enacted.
Crypto Market Reaction
A lack of reaction has been observed for now, despite this determination to help further legitimize the digital currency market in South Korea. Crypto market developments in the country are always watched very carefully. This is given their large crypto market participation. It was reported in December 2017 that South Korea accounted for as much as 17% of all Ethereum trades occurring in cryptocurrency markets.
Market Reactions To South Korean Related News
Ripple (XRP) crashed in January, following CoinMarketCap’s decision to remove XRP price data from Korean exchange desks. This as a result largely brought down the total average.
On 11th January, Korean crypto exchange Coinrail was hacked, and over $40 million in tokens were stolen. Bitcoin initially dropped over 11% on this.
One final example, UPbit, a South Korean exchange, was investigated by authorities for illicitly moving customer funds to the account of its executives. Bitcoin initially dropped over 7% on the news.
Given the above mentioned, one should keep an eye on any developments coming out of South Korea, for the foreseeable future.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.