Despite Ongoing Probes, ICO Legalization in the Cards in South Korea

South Korea has long been a big player in the cryptocurrency world, but recent government crackdowns have stymied the growth of local blockchain-based firms.

Despite probes into exchanges as recent as last week, there are concerted efforts to re-legalize initial coin offerings in the country.

South Korean lawmakers are working on legislation that aims to lift existing bans on ICOs.According to The Korea Times, a group of lawmakers is hoping to overturn the government's ban on local ICOs that was enforced in September 2017.Helping legitimate ICOs get on their feetThe cryptocurrency boom in the last two years has led to the launch of numerous ICOs around the world.

Financial regulator warming up as wellWhile lawmakers push for their bill to be cleared by the National Assembly, the South Korean Financial Supervisory Service is reportedly set to ease up on cryptocurrency regulations.

Recently appointed FSS governor Yoon Suk-heun was quoted by The Korea Times saying there were "Some positive aspects" to cryptocurrencies.

Regulations have a role to playIn an interview with Forbes in April, the CEO of South Korean exchange Coinone Cha Myunghun explained the need for government guidelines and regulations in the industry.

Move to foster blockchain development in South KoreaAs Cointelegraph reported in March, the South Korean government will likely move swiftly to provide regulations that will foster the growth of blockchain technology while protecting consumers from ICO scams and fraud.

Given the voracious appetite for cryptocurrency trading in South Korea, the government seems to be taking baby steps towards a stance that will benefit all parties involved.

Further statements from these various players will confirm this stance, but at this stage the outlook is now far more positive than it had been in the early months of 2018.Regulators still probingWith that being said, the FSC is still keeping close tabs on local cryptocurrency exchanges, which have been subject to probes over the past week.

The FSC is looking into the bank accounts of a number of exchanges, including Bithumb, to investigate allegations of money laundering and fraud through cryptocurrency exchanges.