South Korea, under the administration of pro-crypto Yoon Suk-yeol, will reform crypto regulations and remove the ban on Initial Coin Offerings (ICOs).
The Bank of Korea (BOK) recently mentioned that it is “necessary to allow new issuance (ICO) of crypto assets in Korea.”
The bank also expressed the need for proper surveillance of the industry, especially when it concerns stablecoins. The BOK pointed out that it is necessary to adopt European Union Crypto Asset Market Act (MiCA)-level regulations for stablecoins.
BOK said that a “balanced approach is needed to foster a sound market through the introduction of a crypto asset regulatory system to promote blockchain and crypto asset innovation while not hindering the development of related industries due to excessive regulation.”
This recent proposal will come into effect with the enactment of South Korea’s Digital Assets Framework Act. This act will also provide clarity on legislation regarding the crypto industry in South Korea.
The mentioned comprehensive legislation is expected to be introduced in 2023 and implemented the following year.