Lawmakers in South Korea seeking to overturn cryptocurrency ban

Opposition in South Korea launching bill aimed at allowing the new cryptocurrencies, overturning government ban introduced last year.


Lawmakers in South Korea are mounting the first parliamentary challenge to the government's ban on domestic initial coin offerings (ICO) which was imposed late last year to curb speculative investment in digital currencies such as bitcoin.

Bill expected this year
According to a report in the Korea Times, a group of lawmakers is moving to legalize the launch of new cryptocurrencies in South Korea. Rep. Hong Eui-rak of the ruling Democratic Party of Korea is leading the move supported by ten other lawmakers, and is working to have a bill backing the move endorsed this year. He told a forum on ICOs and blockchain technology at the National Assembly on Wednesday, "The bill is aimed at legalizing ICOs under the government's supervision," He said the bill was based on a joint study by his office and the Korea International Trade Association (KITA).

Tight supervision
The bill will provide for ICOs initiated by public organizations and research centers committed to promoting and developing blockchain technology, and subject to tight supervision by the Financial Services Commission and the Ministry of Science and ICT.  At the forum, National Assembly Speaker Chung Sye-kyun also underscored the lawmakers' role in removing political uncertainties facing cryptos and blockchain technology. He said, "Blockchain and cryptos can be used in various public sectors for good causes. Given their potential, we need to work to help reduce political uncertainties they face."

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