The National Assembly has officially made a proposal to allow domestic initial coin offerings (ICOs). As the administration is sitting on its hands after imposing a total ban on ICOs in September last year, the National Assembly has come forward with an official recommendation.
With the government failing to present any guidelines for ICOs, domestic blockchain companies are going to Singapore and Switzerland to do an ICO and pay unnecessary expenses. Investors are also exposed to the risks of crime impersonating ICOs of leading companies.
In this regard, the National Assembly suggested a legislative and policy proposal of recommendation to allow ICOs under the conditions of investor protection provisions preparation. Accordingly, all eyes are on whether discussion on blockchain and ICOs between the government and the National Assembly is will accelerate.
The special committee on the fourth industrial revolution under the National Assembly held the last general meeting on May 28 and adopted the activity reports over the past six months. Through the legislative and policy proposal of recommendation finalized on the same day, the committee accused the administration of neglecting its duty in responding to blockchain application expansion, which was selected as a core subject in the regulatory reform sector.
The special committee on the fourth industrial revolution said, “We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order. The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently provide industrial support. We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee.”