Over the last few months, South Korea has tightened the regulations on the crypto market. However, latest developments are suggesting not just a softened stance, we might actually be in for a legal status for Cryptocurrencies and ICOs.
Is crypto-strict South Korea finally relaxing on cryptos
According to Korea Times, the Supreme Court of the country recognized cryptocurrency legal as an “asset with measurable value.”
The decision came when a previous appellate court ordered to confiscate 191 bitcoins from an individual named Ahn. These bitcoins (BTC) are worth 2.4 billion won or $2.3 million that are earned from running an online pornography website. This was reportedly the first time a cryptocurrency has been “subject to confiscation.”
The Supreme Court of South Korea stated:
“The cryptocurrency is recognized to have value so it can be confiscated.”
The 216 bitcoins were earned illegally that prosecutors urged that should be seized as cyber assets. But the lower court rules against them stating they have no physical form and only exists electronically.
According to the article,
“Under Korean law, seizable hidden assets ranges from cash, stocks and money in deposit accounts as well as other tangible and intangible assets that hold value.”
The high court then ordered bitcoins to be confiscated because “the bitcoins were earned from the proceeds of crime.”
The Supreme Court upheld this ruling which has the bitcoins, with five-fold increased value as Ahn was convicted in september, eventually confiscated.
South Korea moving towards allowing ICOs
Just recently, the National Assembly of the country made a proposal to allow domestic ICOs. Last year, regulators banned the ICOs completely and have failed to present any guidelines.
Now, the National Assembly has come forward with legislative and policy proposal to allow ICOs with focus on investor protection.
The special committee stated:
“We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order. The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently provide industrial support. We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee.”
After taking a strict stance on cryptos and ICOs, South Korea is gradually making its move towards legalizing the market.
Do you think the legalization of cryptos and ICOs will happen sooner than later? Share your thoughts with us!
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.