The government of the nation had outlawed ICOs in the crypto sector.
The BOK emphasized the need for industry oversight.
To achieve a balance between promoting innovation and guaranteeing proper consumer protection measures, South Korea is actively examining its regulatory movements in the crypto market. The government of the nation had outlawed ICOs in the crypto sector. However, it seems like that the rule may shortly be thrown out.
This information was first reported by a local news source on Monday. Apparently, the Bank of Korea (BOK), South Korea’s central bank, has lately said that the issuance of new digital assets in ICOs is essential to the country’s crypto economy.
Much Needed Industry Regulations
Moreover, the BOK emphasized the need for industry oversight, particularly in regard to stablecoins. This is satisfactory, especially in light of the recent depegging pattern. Seen in a number of stablecoins, beginning with Terra’s UST.
The BOK also said that freshly produced digital coins still make their way into South Korea despite the prohibition on ICOs. Organizations in the crypto space do this by creating digital assets overseas and then listing them on South Korean exchanges like Bithumb.
The new proposal will become law in South Korea if the Digital Assets Framework Act is passed. Moreover, this forthcoming regulatory action would also clarify South Korean law pertaining to the business.
The country of South Korea is also working to ensure that adequate consumer protection measures are in place. A new report from South Korea estimates that in 2022, cryptocurrencies would account for 75% of all illicit foreign exchange transactions in the nation. The BOK did stress, however, that they will take care not to restrict creativity in the process of implementing these rules.