The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Tue, July 5, 2022 | 07:25
Policies
Korea to allow ICOs with new regulations
Posted : 2018-03-08 17:43
Updated : 2018-03-08 21:08
Print Preview
Font Size Up
Font Size Down
By Kim Yoo-chul

The financial authorities are preparing a plan to allow initial coin offerings (ICOs), digital token-based fundraising rounds, for domestic investors, to advance blockchain-based technologies, according to sources familiar with the issue.

"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," said a source asking for anonymity as he wasn't authorized to speak to the media.

The plan, if implemented, will be a major reversal as last September the government banned ICOs, claiming cryptocurrencies were neither money, nor currency or financial products.

Despite this, the administration has yet to implement the ICO rule and hasn't forced companies to return ICO funds. It also continues to let local investors put money into foreign ICOs and digital currency exchanges operating within the country.

Kang Young-soo, who oversees cryptocurrency trading policies at the Financial Service Commission (FSC), said the country's top financial policy regulator has yet to decide whether to allow ICOs in Korea for domestic investors and companies.

"There are many speculating about the possibility of allowing ICOs. The FSC has acknowledged a third-party view regarding the issue, but there's nothing that we can say officially at the moment," Kang said.

Another source familiar with the country's tax code said he expects the order banning ICOs would only be reversed after the country fixes the legal groundwork for crypto-trading.

"Various scenarios such as the imposition of 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," said the source. He added that allowing ICOs should involve local banks, the justice and finance ministries, and the tax agency to create transparency. This will allow the government to track the history of capital inflow into ICOs.

ICOs are used by startups to raise funds with digital currencies which work through blockchain technologies. In Korea, some startups used ICOs as they require little paperwork, letting companies solicit money directly from investors rather than relying on banks or venture-capital firms (VCs).

When the ICO ban was announced, local startups which had planned to raise seed money through them said they would raise funds overseas, instead.

A trend taking place is that the number of investors interested in ICOs is rising significantly. Also, with increased transparency, more and more investors are able to make better investment decisions when it comes to the offerings. Some analysts say this is the reason companies are gaining larger investments in shorter time periods.

Kang, said the country has no plans to regulate cryptocurrencies and blockchain technologies, while it tries to work out how to regulate the market.

"Yes, we have to have plans on how to advance blockchain-related technologies and effectively regulate crypto-trading. This is a separate issue," Kang told an industry forum held recently at the National Assembly.




Emailyckim@ktimes.com Article ListMore articles by this reporter
 
LG
  • Typhoon Aere forecast to bring extended heatwave
  • [ANALYSIS] Korean exporters start rethinking 'China strategy'
  • Banks favor 'MZ generation' celebrities for marketing in digital era
  • [INTERVIEW] 'Repatriation puts fear in eyes of all North Koreans,' rights expert says
  • 'Korea, Japan should restore visa waiver program'
  • Pakistan unveils Buddhist heritage in documentary
  • KT drama 'Extraordinary Attorney Woo' popular on Netflix
  • Georgian wine ready to captivate Korean market
  • 'Global firms look to Korea for inspiration and trends': Kantar CCO
  • Photo of Yoon staring at blank computer screen raises eyebrows
  • Moon Geun-young to make directorial film debut at BIFAN Moon Geun-young to make directorial film debut at BIFAN
  • Lee Jung-hyun returns to big screen after becoming a mom Lee Jung-hyun returns to big screen after becoming a mom
  • BLACKPINK's 'Ddu-du Ddu-du' sets YouTube views record for K-pop group BLACKPINK's 'Ddu-du Ddu-du' sets YouTube views record for K-pop group
  • [INTERVIEW] How Frank Wildhorn became most popular musical composer in Korea [INTERVIEW] How Frank Wildhorn became most popular musical composer in Korea
  • Maroon 5's world tour image with Rising Sun design causes stir Maroon 5's world tour image with Rising Sun design causes stir
DARKROOM
  • Afghanistan earthquake killed more than 1,000

    Afghanistan earthquake killed more than 1,000

  • Divided America reacts to overturn of Roe vs. Wade

    Divided America reacts to overturn of Roe vs. Wade

  • Namaste: Yogis to celebrate International Yoga Day

    Namaste: Yogis to celebrate International Yoga Day

  • Poor hit harder by economic crisis

    Poor hit harder by economic crisis

  • Roland Garros 2022

    Roland Garros 2022

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group