South Korea is one of many countries that have banned the partake in ICOs and similar activities, forcing many investors to verify their identities given they still wanted to invest. This led to thousands of people signing a petition to force the South Korean government in reconsidering the regulations that are currently in place. Fortunately, the G20 financial policymakers have concluded that crypto can be considered as ‘Financial Assets’.
The leaders of the world’s largest economies have come together and have confirmed that July is the absolute deadline to make the necessary changes towards regulating cryptocurrencies. This is believed to be the first of several steps that can contribute towards “unified regulations”.
Once classified as “non-financial assets”, many believe that South Korea will loosen up crypto-related policies. Korea supposedly has agreed to apply the standard of the Financial Action Task Force (FATF), a governmental body that stresses the importance of preventing money-laundering and terrorist financing. The country’s Financial Supervisory Service (FSS) also supports Korea’s new view on easing crypto rules, however, they stated that they will continue to work with the Financial Services Commission (FSC) to prevent scams of any sort.
Here is a statement released by the FSS representatives: “It’s almost certain that cryptocurrencies will be classified as assets and the main issue will be centered on how to regulate them properly under the unified frame that will be agreed upon between G20 nations. Given the current stance [in Korea], this isn’t good, but we will step up efforts to improve things.”
In early May, Korean lawmakers proposed a new bill that aimed to “legalize new digital currencies and ICOs in the country”, with some discussion surfing on a potential taxation, but since the G20 meeting, changes might be made to such matters.
The use of blockchain technology is slowly being accepted and integrated by Asian countries, with more and more development of decentralized applications (dApp) in place. Will Korean traders finally be able to dive into the crypto market without having to worry over strict rules and regulations?