Lawmaker Lee Sang-min of the governing Democratic Party will initiate a bill aimed at promoting the blockchain industry promotion next month. The bill would allow startups to raise capital through initial coin offering (ICO) and security token offering (STO).
The announcement came on the same day as the Financial Supervisory Service reaffirmed its current ban on ICO. The regulator said the ICO is quite risky for investors.
Lee unveiled his draft bill Wednesday in a conference at the National Assembly. The Korea Fintech Industry Association said it participated in the drafting of the bill.
The bill calls for proving regulatory sandbox privilege to startups to be housed in the regulation-free industrial zones. Those inside the zones would enjoy tax holiday and could raise up to 5 billion won through ICO, and up to 20 billion won through STO.
Under the bill, financial services companies could invest in blockchain developers. Startups could also get investment from private investors, including venture capitals.
Lawmakers of both the governing and opposition parties tabled 10 bills aimed at regulating or fostering cryptocurrency and blockchain. However, no serious discussion was made at the financial services committee.