Key Takeaways:
- Yoon’s administration will reintroduce ICOs.
- He will be taking charge of his duties from next week.
The users of digital currencies are always subject to high risks such as scams, frauds, and rug pulls. Therefore, to protect the consumers from illicit activities the regulators have been taking precautions. For similar reasons, in September 2017, South Korea banned ICO or Initial Coin Offerings. The national news agency of Yonhap reported that the money raised through ICOs was going in an “unproductive and speculative direction”, thus leading to the ban.
However, on May 4, the South Korean president-elect Yoon Sukyeol’s administration added a clause introducing ICOs in its 110 public undertakings that were reported Monday. The government has invested powers in its right-wing to frame a two-way regulatory framework and will classify digital assets as securities and non-securities.
The bill proposed by the presidential transition committee says that the goal is to look after the issuance and listing of digital currencies. Another task will be to prevent unfair trade acts to protect consumers. The incoming administration has also included the establishment of legislation that will have the regulations on issuing virtual currencies like NFTs, “investor protection and stabilizing digital transactions”.
The term of Yoon’s administration begins on May 10, 2022. The committee has also revealed that they will discuss the taxes on digital assets after the establishment of the investor protection-focused legislation.
