Cryptocurrency News

South Korea Presidential Aspirants Promises to Reintroduce ICOs

Two South Korean presidential aspirants stated that the ICO prohibition would be reviewed if they win the presidential elections. ICOs are presently prohibited in South Korea, and anybody who attempts to use the financing mechanism locally faces severe penalties.

There is no doubt that these contestants in South Korea’s presidential elections are allegedly considering lifting the country’s ban on initial coin offerings (ICOs) to appeal to younger voters.

According to a report by Forkast News on Wednesday, conservative People Power Party candidate Yoon Suk-yeol and Democratic Party of Korea candidate Lee Jae-Myung indicated they were contemplating lifting a restriction on crypto fundraising. 

According to the article, Yoon, who is behind Lee in the polls, said he will accept ICOs provided bank-certified and licensed crypto exchanges monitor them.

According to recent Realmeter polls, Lee presently has a 40.9 percent advantage against Yoon (39.2%). Lee also stated that he would discuss the status of initial coin offerings (ICOs) at a meeting with local exchanges. 

Lee also declared on January 6 that he would be soliciting donations for his campaign by distributing non-fungible tokens as receipts to contributors. The country’s financial regulator, the FSC, refused to regulate NFTs in November, claiming that they do not meet the Financial Action Task Force’s definition of “virtual asset” (FATF).

When was ICO banned?

In a country that prohibited initial coin offerings (ICOs) more than four years ago, crypto is proving to be a severe issue among regular voters.

The country’s financial authority, the Financial Services Commission, outlawed the use of initial coin offerings (ICOs) in 2017 and warned that anybody participating would face “severe consequences.” Last month, South Korean lawmakers opted to postpone the implementation of a new crypto tax on digital assets, which was slated to take effect in 2023.

Benefits of ICO

With the growth of bitcoin and blockchain, cryptocurrency has increased recognition as an opportunity for fundraising. We could say that South Koreans have missed out on some benefits of ICO, such as:

1 Token may be bought and sold all around the world. An initial coin offering (ICO) allows worldwide investors to invest in a new currency. In many situations, digital money transfers into project coin offers are a worldwide endeavor.

If an IPO account gets hundreds of wire transfers in a matter of minutes, the assets would most likely be frozen in the bank account. On the other hand, token sales paid for using digital cryptocurrency are always open for business.

  1. Liquidity Premium in the Token Economy

When a token is sold in an ICO, it acquires value. This value exists in an open market that operates all round the clock. This is very different from the equity in an IPO. In some situations, it might take a decade for IPO investments to become exit-capable. Tokens, on the other hand, can be sold in minutes.

The presidential election in South Korea is scheduled for March 9, 2022, and will be the country’s eighth since switching to a direct election democracy in 1987.

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