South Korea may allow domestic ICOs for first time since 2017

South Korea is considering allowing domestic initial coin offerings (ICOs) for the first time since a blanket ban was imposed in 2017, Maeil Business Newspaper reported exclusively. The change could take effect as early as next year. The report cites a draft document from South Korea’s Financial Services Commission (FSC) outlining key provisions for the country's Digital Asset Basic Act. According to the document, the FSC aims to permit domestic digital asset sales with sufficient information disclosure to curb the practice of projects issuing tokens overseas before listing on local exchanges. The draft also specifies new regulations for stablecoins, which would prohibit the domestic trading of overseas stablecoins like USDT and USDC unless their issuers establish a physical presence in South Korea. These proposals are part of the second phase of legislation for the Digital Asset Basic Act. In an official statement, the FSC clarified that the contents of the second-phase law have not been finalized and that discussions with relevant agencies are still underway.