The battle to for global blockchain supremacy rages on in South Korea as the head of the Korean Blockchain Association makes further calls to legalize initial coin offerings (ICOs).
Chin Dae-je, chairman of the Korean Blockchain Association, made a strong case for the presently banned fundraising method whilst speaking at a National Assembly Library seminar in Yeouido, western Seoul.
Believing that ICOs are the key to creating new jobs, boosting the economy and producing innovative world-leading blockchain startups, the chairman said:
“The government should implement guidelines to nurture the domestic blockchain industry, which will help Korea emerge as a global industry leader… Startups who comply with guidelines should be allowed to launch ICOs.”
ICOs have been a point of contention in many nations as they struggle to classify and regulate cryptocurrency tokens. Furthermore, ICOs have a muddied history of scams and fraudulent activities that caused knee-jerk responses from many governments such as the United States and South Korea, who banned ICOs or made them incredibly difficult to launch.
While investor and consumer protections have been at the crux of the contentious debate, so has the stifling of domestic blockchain enterprise and innovation in South Korea. According to the report, disallowing domestic ICOs has resulted in startups setting up shop in jurisdictions that accommodate ICOs such as Hong Kong, Japan, and Thailand.
Despite this claim, South Korea is home to a robust blockchain market with major investors and traditional companies beginning to enter the space and drive innovation. In addition to this, city governments, as well as national government entities, are largely in favor of backing the technology through public sector pilot projects, funding, education, and implementation.