May 25, 2022

In South Korea, the ban on ICOs will be lifted and a law on cryptocurrencies will be adopted

The newly elected president of South Korea, Yoon Suk-yeol, plans to carry out a full-scale reform of the legislation regulating turnover of cryptocurrencies.

The administration of the head of the country set 110 tasks for parliamentarians, two of them are related to virtual currencies and provide:

1. Repeal of the ban on the initial coin offering (ICO);

2. Adoption of the “Basic Law on Digital Assets”.The Financial Services Commission of South Korea banned ICOs in 2017, citing the high level of volatility in the rate of digital assets, the speculative nature of trading in tokens, and the dominance of Windows crypto.

However, Yoon Suk Yeol wants to legalize ICO so that blockchain startups have a tool to attract funding.

The “Basic Law on Digital Assets” assumes the separation of cryptocurrencies into two types: related and not related to securities.

Depending on the status of virtual currencies, there will beapply different principles for regulating their release and listing on trading platforms. The decree also provides for the implementation of mechanisms to protect the rights of traders, investors and NFT owners.