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.
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.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.