According to The Korea Times, South Korean financial authorities are discussing plans to re-introduce ICOs into the country.
Last September, the South Korean government banned ICOs, not trusting cryptocurrencies and their lack of regulation. However, this didn’t deter South Korean startups. Instead of running ICOs in their own country, they simply turned to foreign investments to get their startups running.
Now, this may no longer be necessary.
An anonymous source stated:
“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.”
Even with the ruling in September, little was actually done to limit ICOs in South Korea. Both foreign ICO investment and crypto trading continue to this day in the country. However, the lifting of the ban would open up even greater opportunity for South Korean investors and traders.
Although many in the crypto world are against regulations, implementing regulations may be the only way for the South Korean government to consider lifting the ban.
According to Kang Young-Soo, the overseer of cryptocurrency trading policies at the Financial Service Commission, government officials have yet to come to a decision about whether or not to allow ICOs in South Korea. It seems that there is debate surrounding how exactly to regulate the crypto market.
Another anonymous source commented what some of the options floating around currently are:
“Various scenarios such as the imposition o the value-added tax, a capital gains tax, or both on trade; and the collection of corporate tax from local cryptocurrency exchanges, as well as the initiation of authorized exchanges with licenses are being discussed.”
Essentially, the South Korean government wants to be able to track the history of capital inflow into ICOs in the country.
South Korea is working first on figuring out how to regulate the general market, according to Young-Soo, before moving into figuring out how to regulate cryptocurrencies and blockchain technologies.