Last week, Korea Times reported sources from the South Korea Government disclosed that the Financial authorities have been planning to legalize and sanction Initial Coin Offerings (ICO’s) in the future.
An anonymous source from the government, who didn’t wish to disclose his identity because of the sensitive issue, told the Korea Times,
“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.”
Choi Jong-ku, Financial Services Commission (FSC) chairman showed his apprehensions towards ICO’s, posing some threats involved for investors within the cryptocurrency market.
In a conference held at the Seoul Government Office, FSC chairman Choi stated that the agency still remains skeptical towards the investor protection policies in place. Choi’s statement translated by Cointelegraph reads:
“There is a possibility that during the creation and issuance of a new digital currency through an ICO, various Ponzi schemes and scam operations may emerge. The agency will remain its negative stance towards the investor protection policies currently imposed on the local cryptocurrency market.”
Despite the FSC raising concerns over increasing the investor protection with the higher enthusiasm of people now entering the crypto market, local financial authorities are attempting to authorize domestic ICOs by enabling strict Know Your Customer (KYC) and Anti-Money Laundering (AML) systems, as well as a taxation policy for investors.
Currently, the South Korean government is in sync with US SEC (Securities and Exchange Commission), of their decision to allow ICOs that are registered with local financial authorities to operate. Another unnamed source within the government told The Korea Times,
“Various scenarios such as the imposition of a value-added tax, a capital gains tax, or both on trade; and the collection of corporate tax from local cryptocurrency exchanges, as well as the initiation of authorized exchanges with licenses are being discussed.”
Apparently, Kakao, South Korea’s largest Internet conglomerate is focusing on integrating cryptocurrencies for its 12,000 merchants and over 100 mln users. Meanwhile, Kakao is planning to conduct an ICO and to release its own token. But due to certain crypto and ICO regulations now coming into play, Kakao may most likely be conducting its ICO outside the country.
If all goes well, then South Korean government may legalizing ICOs in no time so as to prevent the country’s leading conglomerates from leaving South Korea to conduct ICOs, which may damage the local Blockchain and cryptocurrency industry.
KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology ,Cryptocurrencies and upcoming ICO’s.