According to the Korean Times, South Korea is currently planning a policy for ICO’s (initial coin offerings). South Korea though one of the leading crypto nations in terms of trade volume and warm and receptive attitude towards crypto had suspended ICO participations for Korean companies since last year. As South Korea plans to allow ICOs, this also coincides with a time when much hope is needed for a struggling crypto space.
Korea currently one of the most advanced countries in terms of cryptocurrency integration in its society, plans to let Korean firms raise capital via ICOs. Koreans have however been able to participate in foreign ICOs, but the government disallowed domestic ICOs.
“The financial authorities have been talking to the country’s tax agency, justice ministry and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met” Korean Times cited.
Last year, the Financial Service Commission (FSC) in South Korea banned ICOs as they said it caused money to be flooded into non-productive and speculative directions.
Other countries which still have a strong policy towards ICOs is China which also banned ICOs last year and has been very tough on cryptocurrency related activities such as mining. They were reported to have asked miners to quit activities or carry to other countries that are friendly towards crypto mining.
With South Korea reinstating ICOs in the country, it is hoped this serves as an example to other nations such as China that are still strict on ICOs with the message that ICOs are not generally a bad thing.
South Korea is also reported to be promoting emerging blockchain technologies and projects that support cryptocurrency transactions and is trying to reverse measures taken in the past to crack down on cryptocurrencies.
This decision of South Korea also comes at a time when the market needs much hope given the decline in Bitcoin’s price to below $10,000 from $20,000 though it was recently discovered that Mt.Gox was responsible for this decline after its trustee flooded the market with large amounts of Bitcoin.
As South Korea plans to allow ICOs in the country, what benefits do you think this has for the crypto space?
Join the conversation in the comment section below.