The South Korean government had banned initial coin offerings (ICO) in September of last year. A news report form the Korean Times, however, suggests that the ban may be reversed to allow for the advancement of blockchain tech.
Their source, who wished to remain anonymous, said
“The financial authorities have been talking to the country’s tax agency, justice ministry and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met.”
An official announcement regarding the lift is yet to be made from the Financial Service Commission (FSC). However, Kang Young-soo, the FSC’s regulator overseeing crypto policies, said that the commission is acknowledging a “third-party view” on the issue.
Young-soo pointed out that while they are working on regulating the crypto market and trading, they have no current plans on regulating cryptocurrencies in general.
The current ICO ban in South Korea only prevents the creation and operation of domestic ICOs. South Koreans may still participate in ICOs run overseas. Another South Korean regulation prohibits resident aliens from trading cryptocurrencies in the country; only South Korean Citizens are allowed to engage in these digital currency exchanges.
The country officials are in talks with officials in China and Japan on the issue of ICO regulations. China also has a ban on ICOs while Japan has strict regulations on crypto trading. The announcement of South Korea’s ICO regulations may not have a set date yet but they may be done in tandem with these countries.