News

South Korea To Reverse Ban on ICOs

News

South Korea To Reverse Ban on ICOs

There had been recently released news that are hinting that South Korea may be lifting the ban it has imposed on domestic ICOs.
Last year, the South Korean government had banned all domestic ICOs and imposed prohibition of citizens from investing in them, effective immediately. This led to a massive panic selling in the crypto market. The ban also caused a lot of blockchain startups to leave South Korea and transfer to more crypto-friendly countries such as Switzerland and Estonia.
South Korea had since been expressing concerns involved in cryptocurrency, such as anonymity and taxation. Certain actions have already been taken to disable and avoid cases of anonymous accounts from cryptocurrency trading wherein a significant share of which is conducted with South Korea’s currency.
In terms of the “Kimchi Premium” or the vast difference between South Korea and other nations, the government have also sprung to action. Foreigners are currently banned from trading cryptocurrencies, to lower the kimchi premium.
With these actions already in place, it’s almost as if South Korea is gearing up to bring back ICOs to the country. This had been confirmed by The Korea Times, a business-centred media company founded by Hankook Ilbo, one of the country’s biggest newspapers. The Korea Times also added that the government is willing to enable ICOs and investors to join in token sales in the event that the government can access data on capital inflows from both individual investors and retail traders into the ICO market.