South Korea to remove ban on ICO; new crypto regulations underway
The president-elect is also pushing to delay the implementation of the country’s controversial crypto tax regulations
By Shashank Bhardwaj
With the new president-elect Yoon Suk-yeol proclaiming the legalization of cryptocurrency fundraising, South Korea has become the latest country to reform cryptocurrency regulations and remove the ban on Initial Coin Offerings (ICOs).
The Financial Services Commission (FSC) of South Korea had banned Initial Coin Offerings (ICOs) in 2017. According to the commission, the prohibition was prompted by crypto’s high volatility and speculation, and illegal activity within the country. The legal body had also prohibited all sorts of virtual currency fundraising. Its principal goal in enacting the ban was managing and monitoring virtual currencies.
Initial coin offerings are part of Yoon’s wider cryptocurrency pledges. The President-elect’s administration has promised to carry out 110 tasks, including improving crypto regulations and lifting the prohibition on ICOs in South Korea. The government will reportedly create a two-lane regulatory framework for ICOs, defining digital assets as securities and non-securities.