Complete Ban on ICOs in South Korea leads to a Constitutional Appeal

Complete Ban on ICOs in South Korea leads to a Constitutional Appeal

The blanket ban imposed by the South Korea government on ICOs has led to a local startup taking the South Korean government to court. Presto a South Korean blockchain firm is going to court to file a constitutional appeal. Furthermore according to Presto since the ban the government has done absolutely nothing to offer guidance on or even show it’s working on bringing forth a legal framework for ICOs.

“Since the government issued the complete ban on ICOs last year, they have offered no information concerning any development.” Kang Kyung-won founder and CEO of Presto a blockchain startup. “Furthermore, as a blockchain startup, we have been hitting a snag since the National Assembly alongside the government have done nothing since the ban was issued. Due to that, we are going to court to get a ruling concerning the legislature’s nonfeasance on the ICO ban.”

Moreover, according to local news outlet Sedaily Presto is alleging the complete ICO ban is not only against the principle of proportionality and the law of the land but is also infringing on the fundamental rights of South Koreans. It is these laws among others that the government is breaking that Presto will use to form the basis of their constitutional appeal against the government.

Presto Proposal

Besides just seeking the court’s interventions on the government blanket ICO ban, Presto has also come up with a suggestion on how ICO startups can run within South Korean borders. Its proposal comes from the fact that Presto is the first firm that is running a Decentralized Autonomous Organization-based Initial Coin Offering (DAICO) platform in South Korea. Through DAICO Presto is giving investors an upper hand through features of a smart contract. The features give users voting votes which enable them to vote for a refund when they lose faith in the project.

Across the globe, governments are having a hard time putting in place a legal framework to enable ICOs to operate without problems. Unlike the South Korea government, the Maltase government is pushing its agenda further of becoming the ultimate blockchain island by passing bills. Recently three bills were passed by the parliament, and now firms in the cryptocurrency sector have clear laws governing their presence in Malta. Besides the South Korean government been taken to court, the India government was ordered by the Supreme Court to state its stand on the crypto issue in India. This was after players in the industry took the government to court.