South Korea’s ban on initial coin offerings (ICOs) could be eased, according to a report from the Korea Times. "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," a source familiar with the matter told the newspaper.
In case of lifting the ICO ban, the South Korean authorities will have to reconsider their previous decision taken in 2017. The country’s government banned raising money through initial coin offerings (ICOs) in September 2017, with cryptocurrencies recognized as an instrument that does not fall within the definition of money and financial products. At the same time, South Korea’s citizens were allowed to take part in foreign transactions with digital assets.
Kang Young-soo, the regulator that oversees cryptocurrency trading policies at the Financial Service Commission (FSC), declined to comment on ICOs other than to say the FSC is considering a "third party view."
Analysts do not rule out the opportunity that South Korea’s ICO ban can be lifted after the regulatory framework will be developed. To effectively regulate the sphere of digital currencies, the country’s authorities are seen to attract various financial structures and tax departments. This will help to better control cash flows in the crypto sphere, the South Korean government believes. At the same time, South Korea does not intend to limit the cryptocurrency market or the use of blockchain technology, but it expects to take these spheres under control.
