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The financial authorities of South Korea are preparing a plan for the possible legalization of ICOs.

 

“The financial authorities are negotiating with the tax department, the Ministry of Justice and other structures of the government on a plan for ICOs, subject to a number of requirements,” said the source of the publication, who is familiar with the situation.

 

The approval of this plan may be a fundamental revision of the decision of the South Korean government, which was adopted last year. In September, ICOs were recognized as an illegal method of attracting financing, and cryptocurrency – a tool that does not meet the criteria of money, financial products or currencies. Despite this, the government did not seek to return funds to investors from the ICOs already held, and allowed its citizens to participate in overseas campaigns.

 

Kang Yang Su, responsible for overseeing the sphere of cryptocurrencies, a representative of the Financial Services Commission (FSC), said his department has not yet made a final decision on the lifting of the ban on conducting ICOs inside the country.

 

Indeed, we are thinking about how best to stimulate the development of blockchain technologies and effectively regulate cryptotrading,” Kang Yang said.

 

The ban on holding ICOs in South Korea can be lifted immediately after the appropriate regulatory framework has been developed. To regulate this area, scenarios of attracting local banks, structures of the ministries of justice and finance, as well as tax authorities are considered. According to the authorities, such an approach, in particular, will allow better control over cash flows in this area.

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According to Kang, the government is looking for a way to regulate the cryptocurrency market, but it does not plan to limit cryptocurrencies or the sphere of blockchain brokering. “Indeed, we think how to contribute to the development of technologies related to blockchain, and effectively regulate the trade in cryptocurrencies.” This is a separate issue,” he explained.

 

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