South Korea, which imposed a ban on conducting ICO last year, intends to weaken the regulation of the crypto industry in line with the recommendations of the G20, reports The Korea Times. The G20 member states agreed that July will be the deadline when they can propose their ideas regarding the creation of a “unified regulation” of cryptocurrencies.
A spokesman for the South Korean Financial Services Commission (FSC) said the regulator did not oppose the idea of cryptocurrencies and takes measures to combat money laundering and other unlawful activities in this area.
South Korea is striving for international cooperation on the issue of foreign cryptocurrency, another official said, and is still in the early stages of developing the relevant regulatory framework.
In May, Yong Suk-Heung, who recently headed the Financial Supervision Service (FSS), said he would consider changing the cryptocurrency control. FSC verifies financial institutions, while FSS examines and controls them under the FSC. Yong Suk-Heung previously reported that the FSS will cooperate with the FSC, when carrying out inspections of financial institutions will require compliance with the special conditions.
A representative of one of the ministries said that the government calls for a “gradual change” in the attitude towards cryptocurrency, while at the same time noting that serious changes in policy should not be counted. “What regulators need to do is to understand how to properly regulate them, as Korea needs to start paying more attention to the blockchain technology, after it will handle the reverse side of the trade in crypto products,” he added.
The National Assembly of South Korea presented a plan for legalization of ICO. Representative of the ruling Democratic Party, Hong Eui-rak, reported that lawmakers are preparing measures to lift the last year’s ban.
The Ministry of Strategy and Finance continues to discuss with the National Tax Service the crippling tax plan, although it could not submit it to the appointed deadline by the end of June, the official said.
Seoul reporter Kim Bayon-yang said that the growth of the spread of cryptocurrencies can be expected as people begin to use them for daily calculations, and not just as a tool for speculation. He expects that interest in cryptocurrencies will double.
Recently, South Korea has raised the issue of recognizing crypto exchanges by regulated financial institutions. According to the new classification, they can get the status of “digital asset brokers”. This, in turn, will open up new opportunities for them to cooperate with local authorities and will require tightening of the rules for identifying clients and combating money laundering.