An anonymous source told the South Korean newspaper:
"The financial authorities have been talking to the country's tax agency, justice ministry, and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met."
Many flout ban
Many Korean crypto enthusiasts are flouting the ban by taking advantage of overseas exchanges and foreign ICOs, despite domestic ban. Kang Young-soo, the regulator that oversees cryptocurrency trading policies at the Financial Service Commission (FSC), wouldn’t comment on ICOs other than to say the FSC is considering a ‘third-party view’.
Young-soo also claims that the country does not wish to stand in the way of innovation and wants blockchain technology to flourish as it has done in other countries. However, he maintains that it is essential that this new technology is controlled and regulated in the right way.
As things are, overseas residents aren’t allowed to trade cryptocurrency in South Korea. This prohibition aims to stop money laundering other possible cross-border crimes.
Additionally, South Korean officials are reportedly in talks with China and Japan over introducing co-operative measures to crackdown on crypto crime and ensure taxes are paid on earnings accordingly.
China also banned ICOs in September of last year. And, as yet, it’s shown no sign of easing up on ICOs and cryptos. However, government officials did initially describe the measures as temporary.
Japan adopts a much more relaxed attitude towards cryptos, hosting some of the largest crypto exchanges in the world.