According to recent reports by a local South Korean news site, Infomax, South Korea has become the latest nation to change cryptocurrency legislation and proposes the elimination of the restriction on Initial Coin Offerings (ICOs). This was made possible by the incoming president-elect Yoon Suk-Yeol’s declaration that cryptocurrency fundraising should be made lawful.
The Bank of Korea (BOK) said:
“In the future, when the Framework Act on Digital Assets is enacted, it is necessary to institutionally allow domestic cryptographic asset ICOs. The effect of making it possible to prepare a protective device is also expected.”
Adding:
“A balanced approach is needed to foster a healthy market through the introduction of a crypto asset regulatory system to promote blockchain and crypto asset innovation while not hindering the development of related industries due to excessive regulation.”
It is important to point out that the anticipated crypto regulation would provide clarity to the industry. Prior to this, the majority of domestic firms created corporations outside of the country in order to approve new crypto assets, and then they listed those assets on trading platforms inside the country.
Late in 2017, when crypto mania took hold throughout the nation, the government reacted with a number of stringent measures, one of which was the implementation of a ban on initial coin offerings (ICOs).
The commission claims that the extreme volatility and speculation associated with cryptocurrencies, together with illicit activities inside the nation, were the driving forces behind the decision to ban their use.
Additionally, the governing body has banned any and all forms of fundraising using virtual currencies. The management and surveillance of virtual currencies were the primary motivation for the ban’s implementation.
