Jung Byung-guk, a South Korean lawmaker leader South Korea’s Bareunmirae Party, stated during the National Assembly, on Wednesday, that South Korea must establish a regulation-free crypto zone for ICOs, following the example of Gibraltar.
“We need to designate a regulation-free blockchain and cryptocurrency special zone or test zone first to make various experiments actively,” stated Jung Byung-guk.
“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,” reported Dtoday.
Jung Byung-guk suggested that South Korea has to take Gibraltar as the perfect example. Lately, many ICOs projects and crypto companies choose Gibraltar over other states precisely because of the country’s more lax cryptocurrency, ICO, and blockchain regulations.
A regulation-free crypto zone in South Korea might solve the lack of an ICO regulatory framework
On the other hand, South Korean lawmakers have no regulatory framework surrounding ICOs in the plan, even though they banned Initial Coin Offerings across the country in September 2017. In fact, the lack of guidelines on token sales in South Korea forced many Korean crypto startups to move to Singapore.
Business Korea reported that “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.
“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,” said Jung Byung-guk.
The lawmaker now plans to meet with governmental representatives to debate his proposal regarding a regulation-free crypto zone in South Korea for ICOs.
