South Korea plans to allow ICOs. According to regional news sources, South Korea’s financial authorities are working on legislation to officially authorize ICOs (Initial Coin Offering), raise funds based on virtual currencies, and develop Blockchain technology for local investors.
South Korea is preparing a law on ICOs
An anonymous source newspaper has the following information:
Financial authorities have introduced a law that would allow ICOs in Korea under certain conditions. They were discussing the plan with the country’s tax office, the ministry of justice, and other relevant government departments.
ICO is an increasingly common way to finance projects.. It’s also less cumbersome and expensive than public offerings in practice to overcome legal hurdles. However, ICOs are an area that needs to be examined and audited, as investors worldwide are exposed to millions of scams.
FSC officials made a statement regarding the regulations for ICOs
Financial Services Commission (Financial Services Commission–FSC) is the country’s main financial regulatory body that administers the Financial Supervisory Service (FSS). Kang Young-soo, FSC’s chief of cryptocurrencies, did not publicly decide on ICO liberalization, saying in parliament on liberalization of ICOs:
Many speculations for the official launch of ICOs exists. FSC agreed to seek a third opinion on the matter. But we can’t make an official statement at this time.. We are working on developing blockchain related technologies and effectively dealing with cryptocurrencies trading regulations.. But that’s a separate issue.
However, Kang Young-soo confirmed that the government wants to build a better infrastructure to advance Blockchain technologies and regulate crypto trade transactions.
Financial authorities, Seeks to advance blockchain-based technologies
Financial authorities have a plan to advance blockchain-based technologies and allow ICO, digital token-based fundraising rounds for local currency investors, according to a report in The Times. in preparation. If the plan goes into effect, the government’s ban on ICOs last September is likely to reverse claims that cryptocurrencies are neither money, nor currency or financial products.. Perhaps this is why the management has not yet implemented the ICO rule and has not compelled companies to return their ICO funds. In addition, local investors continue to be allowed to exchange foreign ICOs and digital currencies operating within the country.
South Korea has an important place in the overall financial health of the speculative cryptocurrency market.. Cryptocurrency market in South Korea plays a key role for the global market.
Corporate tax collection from local cryptocurrency transactions
An anonymous source, corporate tax collection from local cryptocurrency transactions and stated that the issues of launching authorized exchanges were discussed. It was also said that these practices would ensure transparency and better monitoring of capital between ministries and banks. will be. Thus, capital outflows from the country will increase and an undesirable situation will arise.. Instead, developments should be adopted by acting with more politicians or existing regulatory structures.
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