The Presidential Transition Committee proposed a newly designed framework to bring a better environment for crypto & blockchain industry growth.
Yoon Suk-yeol is the current president of South Korea, who won the presidential election in March 2022. To get support, Yoon promised to bring huge numbers of policies in favor of crypto & blockchain adoption and also promised to allow ICOs projects in South Korea, which was banned in 2017.
Recently the Presidential Transition Committee proposed a new framework to bring regulation on the activities going on in the crypto industry to bring better room for the crypto ecosystem to evolve.
The proposed Digital Asset Framework Act included goals to bring a better environment that encourages responsible growth based on investor trust. These things will be possible with the introduction of better rules for issuing tokens, including NFTs and exchange listings.
The newly designed framework aims to unban Initial Coins Offerings (ICOs) based projects, which will first categorize such projects under the security or non-security category.
“It is planned to establish a regulatory system in the form of ‘security type’ and ‘non-security type’ such as utility and payment settlement depending on the economic substance of virtual assets.”
ICOs ban
In 2017, the majority of the big players launched ICOs projects to raise funds to launch coins. However at that time, it was not a bad option for the crypto projects to launch a coin but many bad actors were scamming with the name of ICOs projects.
At present, US Securities and Exchange Commission (SEC) is doing research and analysis on such crypto projects, which raised funds through ICOs and trying to force them to register under the securities body. The Ripple vs SEC case is a better example of it.
In 2017, China & South Korea imposed a ban on ICOs projects. At present crypto is 100% banned in China but in South Korea, crypto-assets trading is fully legal. Now there are huge chances for ICOs projects to get the green signal to start with something new.
Read also: US regulatory body approves Bitcoin Futures Fund (XBTO) of Valkyrie
After 5 years, South Korea may unban the ICOs
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