Here’s How South Korea Is Preparing To Become Next Crypto Hub

South Korea is working towards a new regulatory framework for digital currencies. This is coming after Yoon Suk-yeol, the South Korean President elect, made room for Initial coin offerings (ICOs), as one of the many things it will give approval to.

South Korean President Elect Yoon has big plans for Crypto

The ICO approval is one out of the 110 tasks that the president’s administration is set to carry out.  The regulatory plans will be split into two, and will classify cryptocurrencies as securities or non-securities. 

Ultimately, the newly proposed bill is intended to monitor and access both the listing and insurance processes of digital assets.  The committee of the Presidential transition explains that the move will also help to avoid biased trading activities within the cryptocurrency marketplace. 

In his administration, Yoon has also set out to denote a legislation known as the Digital Asset Basic Act. It will include the rules and regulations that will aid the process of issuing cryptocurrencies and other digital tokens. They will include investor protection, gauging and levelling of digital transactions and also Non-fungible tokens (NFTs). 

In addition, the presidential committee also noted that the tasking of digital assets will also be looked into, right after investor-protection legislation has been arranged.

The ICO Ban Might also be lifted

Recall that back in 2017, South Korea’s Financial Services Commission (FSC) placed a ban on Initial Coin Offerings (ICOs). The ban was enacted because of the intense volatility and speculations, as well as criminal related activities within the local South Korean ecosystem. However, with the arrival of a new administration, it is being anticipated that the long-standing ban might be lifted. 

The Crypto-scene in the country is also seeing some significant growth with regulation. Back in 2020, Cryptocurrencies were regulated and legalized, after the national assembly in South Korea passed a new legislation. 

In March of 2022, Crypto usage surged significantly, after Yoon, whose term begins on the 10th of May 2022,  revealed his plans to halt the taxation of cryptocurrency gains, up to as much as 50 million won ($39,706). The move is expected to boost crypto-adoption in the country, and further add to the global cryptocurrency market cap.