During the National Assembly last Wednesday, Jung Byung-guk, a South Korean lawmaker and leader of the South Korean Bareunmirae party stated that South Korea should follow the example of Gibraltar and establish a regulation-free crypto zone for ICO’s.
“We need to designate a regulation-free blockchain and cryptocurrency special zone or test zone first to make various experiments actively,” said Jung Byung-guk
Dtoday reported “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. It is hoped that tightly-packed blockchain companies will be able to increase synergies and improve regulatory efficiency.”
The South Korean Lawmaker suggested Gibraltar as a perfect example for South Korea to follow. Reason being that lately, more ICO projects and crypto companies are choosing Gibraltar over other countries because of their laxer cryptocurrency, ICO and blockchain regulations.
Initial Coin Offerings (ICO) were banned since September 2017 and it seems that the country has no new updates on regulatory framework surrounding ICOs. Thus forcing many South Korean crypto companies have moved abroad to countries such as Singapore.
Jung Byun-guk 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 also been holding numerous meetings and seminars to revise and enact related laws, but we haven’t found an answer yet,” and is planning to meet with governmental representatives to try and debate his proposal regarding a regulation-free crypto zone in South Korea for ICOs.
A report by Business Korea said “there is no definite definition for virtual currencies nor regulations on unfair business practices. Accordingly, the number of fraud cases aiming for such legal blind spots is on the rise,” even though the South Korean government banned ICOs for tackling fraudulent activities.
The future of blockchain and cryptocurrency in South Korea remains unclear as of now, but there is some new development. Bitthumb, South Korea’s second largest cryptocurrency exchange has partnered with Nonghyup Bank and resumes registration.