South Korea to consider lifting ban on ICOs

In South Korea, authorities may review the ban on conducting ICO after the FSC‘s proposal to include token sales in the Capital Markets Act. Money Today reports.

During hearings before the National Assembly’s Political Affairs Committee, the regulator’s vice-chairman Do Gyu-sang proposed the initiative.

According to the official, legalising ICOs would require revising corporate financial reporting requirements. In particular, the FSC proposed adding a prospectus to this list, a feature typical for obtaining a listing on a stock exchange.

The document should also contain a detailed description of the project, the class of virtual assets, information about major investors and the underlying technology.

The draft law also includes a proposal to provide detailed information about transaction risks and the taxes and charges associated with them. Funds raised in the course of an ICO would need to be deposited in a bank.

The FSC banned all forms of ICOs in 2017. In 2018 the Commission contemplated overturning its decision, but ultimately left it in place.

As reported in October, the opposition in South Korea advocated delaying taxation of cryptocurrencies.

Earlier, the Ministry of Economy and Finance determined that the new requirements would take effect from 1 January 2022. The tax would be 20% of profits earned above 2.5 million won (~$2,090).

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