The Constitutional Court has decided to rule on whether the Korean government’s blanket ban on initial coin offerings (ICOS) is unconstitutional in a trial on the merits of a case. The ruling will draw keen attention as it might serve as an occasion for speeding up the enactment of relevant laws.
The top court decided to put the unconstitutionality lawsuit on ICOs on trial on Dec. 26. This means that the Constitutional Court determined that the constitutional appeal filed by Presto, a blockchain startup, would meet basic requirements.
Earlier in December, Presto filed a constitutional appeal, alleging that banning all types of ICOs is against the rule of law and the principle of proportionality, thereby violating basic rights, without legal grounds.
Defense attorney Park Ju-hyun of Law Group Gwanghwa said, “The case has been put on a trial of the merits of a case following the acknowledgement of the basic requirements. It would be possible to get closer to the essence.” “Hopefully this will be an occasion to define regulations on blockchain, a cutting-edge technology of the future. Opening the future of Korea will rest with the Constitutional Court.”
A full bench of the top court will review the case with documents primarily. The core issue is whether the government’s complete ban on ICOs infringed upon the people’s basic rights and thus violated the rule of law.
The government has to clarify the legal basis for its ICO ban in the trial. It’s no wonder the people’s basic rights can be restricted only by the laws enacted by the National Assembly.
The Constitutional Court is expected to reach a verdict according to its judgment on restrictions on the relevant industry by the government’s measures and the extent of violations of the people’s fundamental rights. If the court finds the ICO ban unconstitutional, there will be legal grounds for creating regulations governing cryptocurrencies.
“The government has obligations to do something but its blanket ban on ICOs amounts to connivance by omission,” said attorney Park, adding that the government should establish the legal basis for penalizing offenses caused by the absence of regulations as soon as possible. /email@example.com
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