The South Korean government, led by President Lee Jae-myung, is advancing legislation to legalize ICOs and tokenize securities to enhance market legitimacy.
Goals and Content of the Reforms
The legislation to legalize ICOs and tokenize securities is supported under the **Virtual Asset Basic Law**. President Lee stated, "The crypto market reform is a five-year national strategic priority that will enhance regulatory clarity and market legitimacy."
New Opportunities for Crypto Venture Funding
The approval of the new legislation is expected to unlock new funding opportunities for crypto ventures. Key affected tokens include **Ethereum** and **Bitcoin**, potentially drawing institutional investors.
Post-Luna Reforms and Their Impact
Previously, South Korea banned ICOs, mirroring actions taken by China in 2017-2018. The collapse of Luna in 2022 spurred tougher regulations that are now evolving to support growth-oriented initiatives.
New legislative initiatives in South Korea may enhance liquidity and increase institutional investor interest, facilitating the development of the cryptocurrency market.
