In September 2017, the financial services Commission of South Korea imposed a ban on ICO. However, according to Korea Times, the ban could be partially lifted, in particular, for the tokens whose status is yet to be clearly defined.
As reported anonymousy a source:
Financial authorities have held consultations with the tax Agency of the country, the Ministry of justice and other relevant government agencies on the topic in order to allow ICO to South Korea under certain conditions.
Despite the local ban, many Korean owners of cryptocurrencies is still involved in international ICO. Kang young-soo, one of the officials of the financial services Commission (FSC), which is responsible for the cryptocurrency direction, refused to comment on the issue of the ICO, but noted that the FSC considers “alternative view”.
In addition, Yang-su stated that the government wants to develop technology projects and to create better infrastructure to regulate activities related to cryptocurrency.
However, the international nature of the cryptocurrency market confronts the legislators of new questions.
Currently, foreign residents are not allowed to trade crypto-currencies in South Korea. This restriction is aimed at combating money-laundering and other cross-border crimes. Meanwhile, South Korean officials are holding consultations with partners in Japan and China regarding regulatory cooperation, and this means that rules can be developed in tandem with these countries.
For its part, China has shown no signs of willingness to abandon their own ban on ICO, which was introduced early September, before the announcement of South Korea.