South Korean President-Elect Announces Approval of ICOs

South Korean president-elect Yoon Suk-yeol, who starts his term on May 10, has announced the approval of initial coin offerings (ICOs).

The move is one of the 110 national tasks he has set for his new administration.

The Conservative People Power Party president made pro-crypto pledges in his election manifesto, including a promise to reverse the 2017 ICO ban. 

Reports say that the president-elect will create a two-lane framework of regulations that will classify digital assets as securities and non-securities.

Recently, the presidential transition committee also named the top presidential advisors. The committee will now reportedly focus on the issuance and listing of digital tokens and the prevention of unfair trade acts.

Meanwhile, a plan to tax crypto profits above $2,000 at a rate of 20% which was set to be implemented in 2023, has been put on hold for now.

South Korean deputy PM argued for tax deferral

Choo Kyung-ho, a nominee in the race for deputy prime minister and finance minister, has argued that the 20% crypto tax on capital gains should be deferred until January 2025, Forkast reported.

Choo said, during a National Assembly confirmation hearing on Monday, that it was too soon to tax the sector as it needs time to mature.

One of the largest South Korean digital banks, KakaoBank, is reportedly ready to partner with a local cryptocurrency exchange, Coinone.

In March, competitor K Bank managed to beat KakaoBank in new user signups, following its partnership with local crypto exchange Upbit.

The Korea Times reported that the number of new customers opening accounts at K Bank was 920,000 in the first two months of the year, surpassing Kakao Bank’s 380,000 during the same period.

The Korea Federation of Banks (KFB) had asked South Korea’s incoming presidential administration to permit local banks to offer crypto services.

The new proposals are in line with President-elect Yoon Seok-yeol’s manifesto pledge to deregulate the crypto industry.

He said in a virtual forum earlier this year: “To realize the unlimited potential of the virtual asset market, we must overhaul regulations that are far from reality and unreasonable.”