South Korea is working on a new digital currency regulatory framework. This follows after South Korean President-elect Yoon Suk-yeol included Initial Coin Offerings (ICOs) as one of the many things the country will be approving.
President-elect Yoon has big plans for cryptocurrency in South Korea
The approval of the ICO is one of the 110 tasks set to accomplish by the president’s administration. The regulatory plans will be divided into two categories, with cryptocurrencies classified as either securities or non-securities.
Ultimately, the newly proposed bill aims to keep track of and gain access to the processes of listing and insuring digital assets. According to the Committee Presidential transition, the move will also aid in the prevention of biased trading in the crypto market.
Yoon has also set the aim to establish legislation called the Digital Asset Basic Act during his administration. It will include the rules and regulations that will assist in the issuance of cryptocurrencies and other digital tokens. Investor protection, measuring and leveling of digital transactions, and non-fungible tokens (NFTs) will also be included.
In addition, the presidential committee stated that after the investor protection law is in place, the tasking of digital assets will also be investigated.
The ban on initial coin offerings (ICOs) may also be lifted
Remember that the Financial Services Commission (FSC) of South Korea banned Initial Coin Offerings (ICOs) in 2017. The ban was implemented in response to the local South Korean ecosystem’s high volatility and speculation, as well as an illegal activity. However, with the arrival of a new administration, it is expected that the long-standing ban would be lifted.
The crypto scene in the country is also seeing substantial growth with regulation. Cryptocurrencies were regulated and authorized in 2020 when South Korea’s national assembly passed new legislation.
Crypto usage soared in March 2022, when Yoon, whose term begins on the 10th of May 2022, announced plans to exempt cryptocurrency gains worth up to 50 million won ($39,706) from taxation. The action is expected to increase cryptocurrency adoption in the country and add to the global cryptocurrency market capitalization.