South Korea Looks To Implement ICO Regulations – Report

Mar 14, 2018 at 16:11

South Korea is planning to have regulations allowing initial coin offerings (ICOs) for domestic investors, the Korea Times reported.

The policy turnaround is to help advance the development of blockchain-based technologies in the country.

A source interviewed by the Korea Times 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.”

As defined by Merriam Webster, ICO refers to an initial offering of a cryptocurrency to the public. It allows tech start-ups to raise funds through the sale of digital tokens.

In September, the South Korean government banned domestic ICOs as cryptocurrencies were not considered as money, currency of financial products.

This has led local companies launching their ICOs overseas.

However, the Financial Service Commission (FSC) has yet to decide whether to allow ICOs in Korea, said Kang Young-soo, who oversees cryptocurrency trading policies at the FSC.

But another source interviewed by the local media said the ban on ICOs would be reserved once the country fixes the legal groundwork for crypto-trading.

These include the issuance of licenses and the imposition of value-added tax, capital gains tax and collection of corporate tax from cryptocurrency exchanges.