South Korea’s ICO ban stirred up a firestorm of controversy. With the country on the brink of becoming a cryptocurrency hotbed, the rug was pulled out from underneath thousands of traders. The initial ban came into effect back in September, causing all kinds of uproar in the process. Considering the backlash, the South Korean government seems to be having a major rethink on its ICO stance. According to reports, the government could go as far as to perform a dramatic U-turn and relegalize ICOs in the Land of the Morning Calm.
Embracing the Fourth Industrial Revolution
The news regarding a potential relegalization began to make headlines during a National Assembly committee that’s been studying the “Fourth Industrial Revolution”. This committee is centered on the introduction of mass-adoption digital products, including cryptocurrencies. The committee feels that there is true relevance in South Korea opening the door to ICOs. Plans are now being put forward to boost the legal position of ICOs in South Korea, making them legal once again in the process.
Facing an Overwhelming Backlash
“We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order, we will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee,” said the committee in an official statement. The banning of ICOs elicited an angry response from the South Korean public, as many felt that it would lead to a complete cryptocurrency ban in the country. Protests were arranged, as pressure was placed on senior government officials to actually resign in the face of the controversy.
Pushing Back Against Regulations
Since the initial announcement, South Korea has seen the establishment of a domestic cryptocurrency market, which has felt the full force of the new regulations. As many still pursue in offering anonymous and multi-account trading, effectively pushing back against the South Korean government. What has also happened is that many once South Korea-based Blockchain projects have decided to move elsewhere – Switzerland and Singapore largely – to move forward with ICO plans. With the world in the midst of cryptocurrency revolution, the general consensus is that South Korea’s ICO ban was a snap decision that hasn’t produced the desired results.
Putting ICO U-Turn Plans in Place
The whole idea behind the ICO ban was to protect investors, but it has simply forced them to take alternate routes to purchase coins. When you partner the National Assembly committee’s recent findings with the sheer backlash facing the South Korean government in wake of the ICO ban, change is clearly needed. The question is, will that change be an ICO reversal? All signs are currently pointing towards that being the case.