South Korea Legislators To Debate New Crypto and ICO Frameworks

South Korea Legislators To Debate New Crypto and ICO Frameworks

South Korea’s parliament is preparing to introduce a new raft of bills to revise the country’s regulation of the cryptocurrency industry. Many industry participants are specifically hoping for more clarity on and relaxation of the current ICO regulatory framework.

The bills will be introduced and debated during an extraordinary session of the National Assembly to be held next week. While that doesn’t mean any bills will be passed, the debates should give an indication of the path forward.

G20 Alignment

It is believed that regulators are looking to bring the nation’s rules in line with those initiated by other G20 nations, while also tightening rules designed to prevent money laundering and the security of exchanges. While the primary focus appears to be on crypto exchanges operating on Korean soil, it is expected that the debate will also touch on ICOs.

Over the last few months, there have been several indications that South Korea’s government is changing its stance on the entire industry. The Ministry of Science and ICT recently announced a blockchain development strategy, and the central bank is reported to be exploring the idea of using a blockchain to establish a cashless society by 2020.

In May, the National Assembly proposed that domestic ICOs be allowed, but the framework for their regulation remains unclear. At its last meeting on 28th May, the committee overseeing crypto policy said, “We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order.”  Next week’s debates may give market participants an indication of what has been decided.