Blockchain Startup Presto Files Complaint Against South Korea’s ICO Ban

ICO News, News, Regulation | December 10, 2018 By:

South Korean blockchain startup Presto has filed a case in a local court alleging that the government’s ban on initial coin offerings (ICO) is unconstitutional.

The South Korean government banned all forms of ICOs in September 2017, but has yet to introduce any law governing them. This has caused a number of local blockchain firms to launch their token sales abroad, providing the opportunity for domestic investors to continue to invest in ICOs.

On Friday, Presto CEO Kang Kyung-won said that the company filed a constitutional complaint against the country’s ban on ICOs. Kang explained that although his company had considered selling tokens via an overseas entity, they trusted that the government will foster this new industry through follow-up measures.

“As a blockchain startup, we have been hitting a snag as the government and the National Assembly have done nothing over the last one year since the government’s blanket ban on ICOs,” said Kang. “We will ask the court to rule on the ICO ban and the legislature’s nonfeasance.”

Presto claims to be a token sale platform with smart contract generator that follows Decentralized Autonomous Organization-based Initial Coin Offering model to protect investors, and to reduce the cost of the token sale process. In DAICO, smart contract agreed between investors and development team is doing the main role which is to preserve the invested fund and to lead polls such as tap poll and refund poll. The polls are for every token owner.

“In this era of the Fourth Industrial Revolution and unbounded competition, one year or two in the science and technology community is comparable to 100 years in the past Industrial Revolution,” said Kang. “Such unconstitutional and pre-modern measures as the ICO ban should not exist any longer.”

Park Ju-hyun, a constitutional lawyer working for Presto, said that the ICO ban infringes on “people’s freedom of occupation and property and equal rights and scientist’s basic rights.” Citing Article 37 (2) of the Korean Constitution, Park added that the basic restrictions were imposed without legal basis.