South Korea To Topple ICO Ban, Legalizes Fundraising for Crypto -Breaking
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South Korea to Overthrow ICO Ban and Legalize Crypto Fundraising- South Korea has legalized Initial Coin Offerings, or ICO.
- New law overturns 2017 ICO ban
- The law for ICO classifies digital assets in securities and nonsecurities.
South Korea overturns the ban on Initial Coin Offering (ICO), 2017 as Yoon Sukyel, the president-elect declared that cryptocurrency fundraising is legal. In detail, Yoon Suk-yeol’s administration has rolled out 110 national tasks, in which ICO was brought back to existence.
In particular, the government will set up a regulatory structure for ICO with two lanes that categorizes digital assets as securities or non-securities. The bill to legalize ICOs focuses on digital tokens, listing and preventing unfair trades.
To add, Yoon’s administration drew plans to implement ICO legislation under the Digital Asset Basic Act. The act will provide guidelines for issuing digital assets, including NFTs and investor protection. It also includes recommendations on stabilizing digital transactions. The committee will discuss tax on crypto-assets.
More interestingly, the new plan of the new government is in accordance with Yoon’s election campaigning promises. His promises regarding crypto development in South Korea were the reason he won votes during the presidential election.
If you look back, the Financial Services Commission of South Korea (FSC) had in 2017 banned fundraising via ICOs for cryptos. It also prohibited fundraising using any form of virtual currency. With the ban, the regulator body had as its primary goal to monitor and control virtual currencies. The government also warned that ICOs could lead to threats and financial frauds.
South Korea has also adopted the amended act on Reporting and Use Specific Financial Transaction Information in March 2021. The law provided guidelines for providers of virtual assets service and specified AML/CTF requirements.
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