Lifting the Ba on ICOs
Initial coin offerings (ICOs) have been illegal in South Korea since September 2017, and South Korean companies are prohibited from investing directly in virtual assets. This has slowed much of the country’s crypto industry innovation, but that appears to be changing as the right-wing government recently approved initial coin offerings (ICOs) to its national 110-task list.
Yoon’s administration included a bill called the Digital Asset Basic Act, including guidelines for issuing digital assets such as non-fungible tokens (NFTs), protecting investors, and stabilizing digital transactions. The presidential transition committee also said a tax on crypto assets would be considered after the investor protection legislation.
the controversial crypto tax
South Korea’s crypto tax was supposed to take effect in fiscal year 2022, but the new administration pushed it back to 2023. The crypto tax law would impose a 20% tax on crypto investment gains exceeding $2,100 a year, making it one of the most controversial changes in the country.
Another key consideration is that South Korea has only four won-to-crypto exchanges, allowing it to monopolize the domestic crypto industry. However, the Korean Banking Federation (KFB) has reportedly asked the new South Korean presidential administration to allow local banks to handle cryptocurrency.