The administration of the new president of South Korea intends to develop transparent laws on the regulation of cryptocurrencies and legalize the initial offering of tokens.
Newly elected President Yoon Suk-yeol, who won the election in March, announced that his administration is going to implement 110 government tasks, one of which will be the “revival of ICO”.
In 2017, the South Korean Financial Services Commission (FSC) imposed a ban on the initial offering of tokens. The agency believed that the ICO contributes to the development of cryptocurrency fraud, money laundering and tax evasion. However, after a president loyal to the crypto industry comes to power, the government plans to work on creating a regulatory framework for regulating ICOs within the framework of the main law on digital assets.
According to the ICO legalization bill, digital assets will be classified as securities. The draft law will contain provisions on the issuance and placement of digital tokens on exchanges, including non-fungible tokens (NFTs). In addition, it will focus on preventing illegal transactions with crypto assets and protecting the interests of investors. The President of South Korea also considers it necessary to cancel the introduction of income tax on cryptocurrencies – until specifics are introduced into the regulation of the industry.
Previously, regulators in South Korea have sought to tighten policy on cryptocurrencies. Last year, the country’s authorities proposed to criminalize the manipulation of the cryptocurrency market, as well as to increase the requirements for passing the identification procedure (KYC).
Last year, due to stricter regulatory requirements, at least 35 cryptocurrency platforms were closed in South Korea. Despite this, over the past year, the total volume of transactions on licensed cryptocurrency exchanges in the country has increased to $46 billion.
Source: Bits
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