South Korea To Topple ICO Ban, Legalizes Fundraising for Crypto

South Korea's 2017 restriction on Initial Coin Offerings (ICOs) has been lifted, with President-elect Yoon Suk-yeol declaring cryptocurrency fundraising legitimate. Yoon Suk-administration yeol's has carried out 110 national tasks, among which the ICO was resurrected.

The government will create a two-track regulatory framework for ICOs, with digital assets classified as securities or non-securities. The law for ICO legalization, according to the presidential transition committee, focuses on the issue and listing of digital tokens as well as the prohibition of unfair transactions.

Yoon's administration also drew out provisions for ICO legislation under the Digital Asset Basic Act. This act will include criteria for issuing digital assets like NFTs, as well as investor protection and digital transaction stabilization. A discussion on crypto-assets tax will also be considered by the committee.

More intriguingly, the new government's approach is consistent with Yoon's election campaign promises. His pledges on cryptocurrency growth in South Korea helped him win votes in the presidential race.

While looking back in time, the South Korean Financial Services Commission (FSC) banned cryptocurrency ICOs in 2017. The legal body had also prohibited all sorts of virtual currency fundraising. The regulatory body's principal goal in enacting the ban was to manage and monitor virtual currency.

ICOs have also been linked to financial schemes and threats, according to the government.

South Korea also implemented the amending legislation on the Reporting and Use of Specific Financial Transaction Information in March 2021. AML/CTF standards for virtual asset service providers were outlined by this statute.