Lawmaker Min Byung-doo of the governing Democratic Party Tuesday proposed that the government permit the issuance of initial coin offering (ICO) to hone the competitiveness of the South Korean blockchain industry.

According to the JoongAng Ilbo, the lawmaker said the current ICO ban is driving out promising blockchain startups out of Korea.

He proposed the government allow the ICO while taking strong measures against fraud, speculation and money laundering. Min said he supports the ICO because the permit would sharpen the competitiveness of the South Korean blockchain industry.

His remark runs counter to the government position against the ICO. The lawmaker said he would raise the issue in an interpellation of the Financial Supervisory Services.

Min said Korea was the No.1 in the world in the competitiveness of the blockchain industry. However, its competitiveness is about 75 percent of the U.S. blockchain industry’s competitiveness.
He said it is wrong to ban the ICO for fear of its adverse effects, adding that the National Assembly should quicken legislation on the blockchain industry promotion.