A South Korean lawmaker has reportedly proposed designating a regulation-free special cryptocurrency zone aimed at initial coin offerings. It has been about a year since token sales were banned in the country but the government has yet to introduce any guidelines for them.
Proposal for Special Crypto Zone
Jung Byung-guk, a pioneer of South Korea’s Bareunmirae Party, uncovered at a National Assembly meeting on Wednesday his proposition to set up an exceptional crypto zone for beginning coin contributions (ICOs), Business Korea revealed.
He recommended that South Korea can utilize Gibraltar as a benchmark, given its progressed budgetary framework and “ICOs are effectively propelled” there, the production passed on. He at that point proposed:
We have to assign a direction free blockchain and digital currency exceptional zone or test zone initially to effectively make different analyses.
Taking note of that he regularly discovers “regions to enhance” in his own particular crypto proposition each time he re-understands it, the official underlined the requirement for an extraordinary test zone.
At the meeting,
“It was suggested that the Crypto Special Zone should be set up in a certain area, rather than being allowed nationwide to be managed in a regulatory sandbox form,” Dtoday reported. “It is hoped that tightly-packed blockchain companies will be able to increase synergies and improve regulatory efficiency.”
Moon Jong-jin, a professor at Myongji University’s Department of Business Administration, was quoted by the publication suggesting that “after financing through ICOs, we should also examine the success rate of specific projects.” He reiterated that caution needs to be exercised when “promoting the crypto special administrative region policy.”
No ICO Regulatory Progress
Since the South Korean government denied a wide range of ICOs in September a year ago, the controllers have been concentrating on cryptographic money directions, however there have been no rules on token deals. In the mean time, different nations, for example, Singapore have been drawing in Korean firms to dispatch their token deals abroad.
While the administration professes to boycott ICOs to ensure financial specialists, Business Korea called attention to that “there is no clear definition for virtual monetary forms nor controls on uncalled for business hones. In like manner, the quantity of misrepresentation cases going for such legitimate blind sides is on the ascent.”
Citing that “other countries are promoting ICOs as a means of helping startups attract capital,” Jung said:
I am so upset to see the South Korean government sitting on its hands after prohibiting all types of ICOs. The National Assembly members have been also holding numerous meetings and seminars to revise and enact related laws but we haven’t found an answer yet.
He is planning to invite government officials and task forces related to cryptocurrencies “to the National Assembly in October to hold the global conference and issue a minimum declaration for ICOs.” He was further quoted by the news outlet saying, “we hope that the declaration serves as a guide for countries in writing ICO guidelines that fit with their own political and economic situations.”