The chairman of Korea’s National Policy Committee strongly recommends and encourages the Korean government to legalize ICOs and create a better regulatory environment for cryptocurrencies, according to the latest crypto news coming from Korea.
Chairman Min explained:
‘’Regulation is not bad. Regulation is necessary, it is the only way to legitimize the market and allow investors to build trust towards the cryptocurrency market.’’
He made clear how important is to embrace new technologies and to follow the trends in this field. Min said that the token sale of Telegram that brought the company $1.7 billion has increased the interest in ICO so the government should pay close attention.
Min emphasized that the government simply cannot dismiss ICO. The importance of following this trend is huge and investments such as the one above are changing the way we look at fundraising. This comes as a warning after the chairman of the Financial Services Commission prevented the biggest Internet Company in South Korea with more than 80 percent market share, from conducting an ICO.
The company named Kakao later moved to Switzerland and conducted ICO there so the chairman realized that forbidding the country of conducting the ICO was probably a mistake.
Chairman Ku said in his defense:
“Even if there is no prohibition on cryptocurrency or digital asset trading, there is a possibility that it [Kakao ICO] may be regarded as fraud or multi-level sales according to the issuance method. Since the risk is very high in terms of investor protection, the government has a negative stance on the ICO.”
The National Assembly in South Korea is waiting to receive an approval of the first crypto-related legislative framework and keep investors optimistic because of the expected changes in the crypto market.
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