South Korea to permit corporate ICOs under new disclosure rules

The South Korean government plans to reauthorize Initial Coin Offerings (ICOs), reversing a ban that has been in place for about nine years since 2017, Newsis reported exclusively. Under the plan being reviewed, coin issuance would be restricted to corporations that meet certain standards to clarify liability in case of future incidents. Additionally, domestic companies issuing coins will be required to submit a project disclosure statement to financial authorities. This system is similar to the securities registration statements filed to protect investors, aiming to mandate the provision of prior information to coin investors. However, authorities have clarified that the filing is for information disclosure rather than an approval process. Discussions also include measures to ensure the issuing corporation bears full responsibility for any subsequent problems. The ICO-related provisions are slated to be included in the forthcoming Digital Asset Basic Act, which constitutes the second phase of the country's virtual asset legislation.