South Korea will soften the crypto restrictions to align with G20
South Korea is the country that has a rather strict policy on cryptocurrencies. Last year South Korea decided to ban all initial coin offerings (ICO) and obliged local crypto investors to proceed with the authentication in order to continue trading via virtual accounts that they have opened in local banks.
G20 influence made South Korea to low down regulations for cryptocurrencies
Now the country has announced its plans to ease regulations on cryptocurrencies. The decision came after G20 has established a plan to create unified cryptocurrency regulations. The G20 leaders agreed to classify cryptocurrencies as financial assets. South Korean government that previously related cryptocurrencies to a non-financial product, now will try to modify the regulations to fit in the G20 standards.
"New regulations will presumably remove the ICO ban"
Said Hong Eui-rak, member of South Korea’s leading Democratic Party. Earlier in May, head of Financial Supervisory Services (FSS) has commented that he considers developing new regulations.
A representative of the Financial Services Commission (FSC) of South Korea commented that the commission is not against cryptocurrencies and was mainly focused on eliminating illegal activities. The country’s Ministry of Strategy and Finance currently develops a taxation scheme in cooperation with the National Tax Agency.