Lawmaker Lee Hye-hoon said Tuesday that the National Assembly would play a leading role in establishing rules and guidelines on blockchain and cryptocurrencies.

In a speech at the 2018 Korea Blockchain Expo in Seoul, the chairperson of the National Assembly Special Committee on the Fourth Industrial Revolution said the government might have limits in changing its negative view on cryptocurrencies. Thus, the National Assembly will lead the government in setting directions on the blockchain and cryptocurrency industry.

She said the special committee would pool wisdom from experts to chart regulatory guidelines on the blockchain and cryptocurrency industry.

She snubbed the government’s dual-policy of supporting blockchain while denying cryptocurrency. It is nonsensical to talk about supporting blockchain while suppressing cryptocurrency, she added.

Lee said the South Korean government has remained passive while suppressing the private-sector initiative for the development of blockchain and cryptocurrencies.

She urged the government to cooperate with the National Assembly to chart the framework for the development of blockchain and cryptocurrencies.

She said the first step is to define what is cryptocurrency, to set rules for issuing, trading, exchanging and paying cryptocurrencies, and to define the scope of cryptocurrency business.

She said South Korea should set rules and requirements for listing cryptocurrencies on the exchange and for penalizing violators. The standards should also encompass requirements for minimum capital and assets as well as a guideline for governance structure. Also needed are rules for public disclosure, internal compliance control system, anti-money-laundering mechanism, and consumer protection.

What the government should do first is whether to allow the initial coin offering. It is meaningless to foster blockchain without allowing ICO. She said, “You cannot do anything unless you are unable to raise funds.”

Hong Nam-ki, chief of the Prime Minister’s Office said the government would make it position on the ICO in November.