South Korea set to remove ban on ICO, new govt to improve crypto regulation

South Korea has become the latest country to unveil plans to improve cryptocurrency regulation and remove the ban on Initial Coin Offerings (ICOs).

Yoon Suk-yeol, South Korean President-elect, is behind the u-turn on harsh cryptocurrency laws in the Asian country as he promised these are one of the many things his government would improve.

Improving crypto regulations and removing the ban on ICO in South Korea are among the 110 tasks that the president’s administration is set to carry out.

South Korea’s 2017 ICO ban

South Korea’s Financial Services Commission (FSC) back in 2017 placed a ban on Initial Coin Offerings (ICOs). The ban resulted from crypto intense volatility and speculations, as well as criminal-related activities within the country, the commission said.

Yoon, a former top prosecutor who emerged victorious last week in the closest vote for the top office in the country’s history, has promised to allow initial coin offerings, or ICOs, as part of his broader cryptocurrency pledges.

The incoming president’s government proposed regulatory bill will be split into two and will classify cryptocurrencies as securities or non-securities. The bill aims to monitor and access both digital asset listing and insurance processes.

Other crypto plans Yoon has for Korea

The president-elect, who assumes office on Thursday, May 10, 2022, has also promised to enact a legislation known as the Digital Asset Basic Act. It will include the rules and regulations that will aid the process of issuing cryptocurrencies and other digital tokens. The legislation would consist of investor protection, gauging and leveling of digital transactions and also Non-fungible tokens (NFTs).

Also, Yoon’s presidential committee has said taxing digital assets would also be looked at after investor-protection legislation has been arranged.

Before now, there has been some improvement with crypto regulation in South Korea, with crypto made legal by the country’s legislation in 2020. Also, crypto adoption has surged in the country.