Will the government change its mind on cryptocurrencies?

WIll the government make a U-turn from its negative stance on cryptocurrency trading and initial coin offering (ICO) this year? Probably, there is little possibility that the government would turn favorable this year.

The South Korean government has adhered to the dual policy of fostering blockchain technologies, but blacklisting cryptocurrencies and ICOs. This policy has cornered many blockchain developers desperate to raise capital.
Unable to overcome the government’s crackdown, many cryptocurrency exchanges have opened subsidiaries overseas, including Singapore and the Philippines.

Many lawyers said blockchain developers and cryptocurrency exchanges could not blame the government.
They said that the government must protect innocent investors from cryptocurrency fraudsters. Blockchain startups must develop core technologies before seeking capital through ICOs. The cryptocurrency exchange should filter out fraudsters, they added.

Lawmakers of both the governing and the opposition parties have submitted five bills on blockchain and cryptocurrency industry promotion. However, it may take time for these bills to pass through the National Assembly because, without the government’s support, lawmakers alone cannot pass these bills, they said.

The South Korean government would closely monitor what the U.S. Securities and Exchange Commission would do on cryptocurrencies.

The government would also take a wait-and-see attitude until global standards and rules would come out on cryptocurrencies.

The Seoul government is extra nervous over the abuse of cryptocurrencies for money-laundering, crime financing, and capital flight.