South Korea had banned Initial Coin Offerings (ICOs) within the country almost a year ago. The move had already drawn some criticism from the cryptocurrency and Blockchain industry, but now a South Korean Blockchain startup Presto has filed a constitutional complaint against the government in response to this. The complaint alleges that banning ICOs is an “unconstitutional” act.
Since the ban on ICOs came into effect about a year ago, the South Korean government has done nothing to address the situation. This has dramatically affected startups looking to get funded through an ICO within the country.
Presto’s announcement regarding the complaint states that the government’s ban on all forms of “initial coin offerings (ICOs) in September last year is unconstitutional.” The company now wants the government to review its stance on the matter.
The CEO of Presto, Kang Kyung-Won stated that,
“We trusted that the government will foster [this] new industry through follow-up measures. However, it has been more than a year since the ban and the government has yet to introduce any forms of ICO guidelines or regulations.”
He expressed his concern regarding the issue, saying that his company has been affected by the unconstitutional ban on ICOs and cryptocurrency, and has shown interest in alternative options such as “setting up an overseas corporation to issue tokens.” However, he remains optimistic as Kang-Won says that the company is still waiting on the government to provide a follow up on the ICO ban. However, it is more than a year since the ban became effective and the government has done nothing about it.
Additionally, he stated that,
“As a blockchain startup company, we face a lot of difficulties due to the ICO ban and the lack of legislation from the government and the Parliament for more than a year. I am requesting confirmation of the unconstitutionality of the lack of legislation.”
With a booming tech industry that shows no signs of slowing down, it came as a shock to many observers when South Korea banned cryptocurrency and ICOs last year, in direct contrast to Malta – which had passed three bills that gave traders unprecedented independence in crypto trading in the country.