Token sales or initial coin offerings (ICO’s) have gained great momentum over the last 18 months, but there have been calls for clear guidelines from market participants to gain legal clarity around the treatment of these sales. In particular, governments have been concerned for consumers to be appropriately protected in their purchase of tokens and to ensure that securities laws are not breached in the process.
After the South Korean Financial Services Commission announced a ban on ICO’s in September 2017, the chairman of Korea’s National Policy Committee has now called to legalise ICO’s on the proviso that a robust regulatory framework is put in place.
As per a report from Coindesk Korea, a member of Korea’s governing Democratic party, Min Byung-Doo commented about the remarkable growth of token sales over recent times stating:
I do not want the ICO door closed completely … The state should not ignore [the issue].
Min explained that a key component to legalising ICOs is to build trust and the way to do this is through appropriate regulation. That said, he did articulate that the main road block for moving regulation forward is the government’s general reluctance to craft out the new rules.
Accordingly, Min pointed for a need of the crypto industry to self-regulate.
Certainly, it’s a step forward and as Min points out, with token sales rapidly growing, it’s prudent to consider how the people of South Korea may be able to participate in a regulated and legal fashion.
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.
This excerpt/article was sourced from Coindesk. For the full article, please click here.