A South Korean lawmaker has reportedly proposed designating a regulation-free special cryptocurrency zone aimed at initial coin offerings. It has been about a year since token sales were banned in the country but the government has yet to introduce any guidelines for them.
Jung Byung-guk, a leader of South Korea’s Bareunmirae Party, revealed at a National Assembly meeting on Wednesday his proposal to set up a special crypto zone for initial coin offerings (ICOs), Business Korea reported.
He suggested that South Korea can use Gibraltar as a benchmark, given its advanced financial system and “ICOs are very actively launched” there, the publication conveyed. He then proposed:
We need to designate a regulation-free blockchain and cryptocurrency special zone or test zone first to actively make various experiments.
Noting that he often finds “areas to improve” in his own crypto proposal every time he re-reads it, the lawmaker emphasized the need for a special test zone.
South Korean Lawmaker Proposes Special Crypto Zone for ICOsAt the meeting, “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,” Dtoday reported. “It is hoped that tightly-packed blockchain companies will be able to increase synergies and improve regulatory efficiency.”
Moon Jong-jin, a professor at Myongji University’s Department of Business Administration, was quoted by the publication suggesting that “after financing through ICOs, we should also examine the success rate of specific projects.” He reiterated that caution needs to be exercised when “promoting the crypto special administrative region policy.”