In response to a universal ban on initial coin offerings (ICOs) instituted by South Korea's Financial Services Commission (FSC) last September, a subcommittee of the National Assembly of the Republic of Korea has called out the legislative body for neglecting its oversight responsibilities regarding the expansion of blockchain and cryptocurrency.
Initially reported by Business Korea, the special committee on the fourth industrial revolution took advantage of a general meeting it held on May 28 to lambaste the FSC's response to both cryptocurrencies and the blockchain technology that underpins them.
According to Business Korea, an official recommendation was made by members of the National Assembly, outlining circumstances under which ICOs could be allowed domestically in South Korea.
"We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order," said officials representing the special subcommittee. "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."
This latest call for regulatory reform follows months of developments pertaining to potential legislation for regulating various aspects of blockchain technology and cryptocurrency, including ICOs. South Korea's newly appointed governor of the Financial Supervisory Service, Yoon Suk-heun, has stated that the organization is considering relaxing regulations.
Historically, South Korea has been one of the quickest nations to adopt cryptocurrency. Attempts to regulate it have occasionally caused a national outcry, and the South Korean government's lack of guidelines on ICOs has resulted in domestic companies moving to crypto hot spots like Switzerland to launch their offerings.