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Legalization of ICOs and digital currencies is in progress – South Korea

Ketaki Dixit

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Legalization of ICOs and digital currencies is in progress - South Korea
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As reported by Korean Times on May 2nd, lawmakers in South Korea are working on a bill which will legalize the launch of new Initial Coin Offerings [ICOs] and cryptocurrencies.

After much skepticism, South Korea has decided to work on legalizing ICOs after new ICOs were banned in December last year to avoid risky investments on cryptocurrencies. As stated by Choi Jong-Ku, the chairman of Financial Services Commission [FSC], the agency had remained skeptical towards the investor protection policies. He said:

“There is a possibility that during the creation and issuance of a new digital currency through an ICO, various Ponzi schemes and scam operations may emerge. The team will continue its negative stance towards the investor protection policies applied on the local crypto market.”

Along with 10 other legislators, Rep. Hong Eui-rak of the ruling Democratic Party of Korea is backing the bill. In a forum on ICOs and blockchain technology at the national assembly on Wednesday, he said that the bill will focus on legalizing ICOs under the government’s supervision.

Hong further added:

“The primary goal of the legislation is helping remove uncertainties facing blockchain-related businesses.”

Lawmakers also play an important role in removing political uncertainties associated with digital currencies and blockchain technology.

Chung Sye-Kyun, a speaker from the National Assembly said:

“Blockchain and cryptos can be used in various public sectors for good causes. Given their potential, we need to work to help reduce political uncertainties they face.”

According to the bill, the ICOs will be under the supervision of the Financial Services Commission and the Ministry of Science and ICT. And it will permit ICOs that are started by public organizations and research centers working towards developing blockchain technology.



A Twitter user commented:

“Icon will moon hard soon (in a couple of weeks/months)”

A market follower tweeted:

“Tim Draper made a good point that there’s now pressure on governments to work for people/companies looking for innovative nations to establish business.”





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Ketaki Dixit is a Journalism major from Jain University. She has about 1-year experience in the field and is passionate about blockchain technology and the cryptocurrency world.

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Montana State makes a move in favor of crypto-space as the law recognizes utility tokens as not securities

Priya

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Montana state makes a move in favor of crypto-space as the law recognizes utility tokens as not securities
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The United States has always been the highlight of the cryptocurrency space in terms of its regulation, with some states introducing laws in its favor and others deciding to not make an official stance. In terms of laying crypto-friendly rules and regulation, Wyoming has always been one of the most recognized state, while the most hostile one is deemed to be New York.

Colorado made headlines earlier this year, with the Digital Token Act that exempts utility tokens from state securities law being signed by the governor in early March 2019. Notably, in the same month, Wyoming State Senate also passed House Bill 70, Utility Token Bill.

Now, another state has joined the bandwagon by making a similar move. Drew Hinkes, Attorney at Carlton Fields, stated that the State of Montana recognizes utility tokens and exempts it from state securities law. The initial announcement pertaining to this bill was made in February 2019, where Montana House Bill was introduced to “Generally revise laws relating to cryptocurrency”.

The Attorney stated on Twitter,

To this, Caitlin Long, the Co-Founder of Wyoming Blockchain Coalition stated,



“Congrats to #Montana for joining #Wyoming & #Colorado in recognizing that #utilitytokens are not securities under state law!”

Montana also made headlines because of news pertaining to cryptocurrency mining regulation. According to a local news portal, Missoula County commissioners had directed its staff to outline an interim law that regulates the cryptocurrency mining industry. The decision to introduce laws on crypto-mining was made due to concerns pertaining to electricity consumption, with the county prompting the use of renewable energy for mining.

Commissioner Cola Rowley had stated,

“This isn’t throwing ice on economic development or saying that industries aren’t welcome here because we’re an unfriendly environment that hates progress. Cryptocurrency and economic development – bringing businesses here – are two very different things.”





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