The country of South Korea and its cryptocurrency movements have been rather helter skelter since the last quarter of last year, especially as we drew near to close. Events heated up further as interest in the cryptocurrency space exploded and more South Korean investors gobbled up tokens of Ripple and other cryptocurrencies. The government and its watchdogs closely studied the growth and stepped up their efforts in regulations. The only issue was that the government was all over the place, the leader of the nation stated that crypto was corrupting the youth, then rumors floated around about the fact that the government may ban exchanges , all of these moves caused great confusion and did have an impact on the psyche and prices on cryptocurrencies during that time period. Yet, due to pressue and quite possibly some rationality on the part of the government, they backtracked and normalized their actions, listening to their constituents and moved toward a less hands on approach.
Now, it seems that government may think about removing their ICO ban and bring back initial coin offerings, welcoming the phenomenon to its shores. The South Korea ICO ban might be more in the near future.
South Korea ICO Ban
It has been around 6 months since South Korea posed a ban on initial coin offerings (ICOs) within its territory.
Much has changed since then. The cryptocurrencies that were frowned upon at the time are being traded with government approved regulations, and it does not seem that they are causing any issues for the government.
As the government required different rules to be followed by the cryptocurrency exchanges, such as making certain that they are able to pass security checks and are as hacker-proof as possible, have minimized the possibility of anonymity in transactions, while implementing proper know-your-customer (KYC) and anti-money laundering practices, the government backed off with their fiery rhetoric. Instead of a ban on cryptocurrency trading they are rethinking more aspects of the space.
It seems that the experience has brought about a change of heart for the government regarding ICOs as well.
The Korea Times recently reported that the government might move forward with removing the ban from ICOs and would instead let them operate under new regulations, much like what it did with cryptocurrencies at the end of January 2018.
Citing a source that asked to remain anonymous, the publication reported that talks were being held between branches of government to eventually allow ICOs to operate under regulations within the country.
Kang Young-soo, an official who oversees cryptocurrency trading policies at the Financial Service Commission (FSC), mentioned that while rumors have been circulating about the government allowing Initial Coin Offerings again, no word had been provided by official sources as of yet.
“There are many speculating about the possibility of allowing ICOs,” Kang said. “The FSC has acknowledged a third-party view regarding the issue, but there’s nothing that we can say officially at the moment.”
However, since this is a developing story, more updates might come through in the future. It would be a great development as the South Korea ICO ban might pose a hurdle for legitimate companies in the country to raise funds and contribute to the crypto economy.