South Korea's Policy Chief Calls for Legalization of ICOs

The chairman of Korea's National Policy Committee has called for the legalization of initial coin offerings, providing that a regulatory framework is put in place.

According to a report from CoinDesk Korea on Tuesday, Min Byung-Doo, who is a member of the country's governing Democratic party, said that, with token sales becoming a global trend, "I do not want the ICO door closed completely ... The state should not ignore [the issue]."

The policy chief spoke earlier Tuesday during 8th plenary session of the National Assembly, at which lawmakers posed questions to the administration.

In order to create trust in the industry, ICOs should also be regulated, Min stressed.

The country's financial watchdog, the Financial Services Commission, announced a ban on ICOs in September 2017, although the law has not yet been enacted, according to the report.

"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."

Several bills seeking to provide a legal framework for cryptocurrencies have already been proposed to the National Assembly in South Korea, with such legislation coming under the jurisdiction of the Political Affairs Committee, CoinDesk Korea previously reported.

With Min being chairman of the committee and now strongly expressing his belief that ICOs should be allowed in law, the odds of regulations being passed in the near future may have just increased.

Further, while Prime Minister Lee Nak-yeon is a supporter of blockchain technology, he has said that the government banned ICOs over concerns about "Side-effects and market overheating."

In separate statements today, Min told a panel discussion with the Korean government's science chief, "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."