South Korea Prepares New Framework for Korean Coins Through Upcoming Regulations

South Korea is taking a significant step toward legitimizing the digital asset market by planning to end its nine-year-long prohibition on Initial Coin Offerings (ICOs). This regulatory shift marks a turning point for blockchain companies and korean coins issuers who have long operated in a restricted environment. The government’s decision to open the door for ICOs reflects a growing recognition that structured regulation is more effective than outright bans in protecting market integrity.

Lifting Nine Years of ICO Restrictions

For nearly a decade, South Korean corporations have been prevented from launching ICOs, pushing many projects to seek alternative markets or operate under regulatory gray areas. The upcoming policy change, which will be codified in the Digital Asset Basic Act, seeks to create a legal pathway for korean coins and token issuance while maintaining strict oversight. The new framework distinguishes itself by focusing on accountability and information architecture rather than simply granting blanket approval.

Transparency and Disclosure Requirements

Under the new regulatory framework, companies that wish to issue korean coins must submit comprehensive project disclosure statements to relevant financial authorities. This requirement ensures that investors receive detailed information about the project’s mechanisms, risks, and financial projections before participating. The emphasis on systematic information disclosure aims to level the playing field, allowing retail investors to make informed decisions without compromising the market’s innovation potential.

Investor Protection and Issuer Accountability

The proposed Digital Asset Basic Act places strong emphasis on issuer liability, making project developers accountable for the accuracy of their disclosures. This shift from prohibition to regulation creates clearer responsibilities for korean coins issuers while establishing protective guardrails for participants. Rather than preventing the market from forming, the government is building institutional safeguards that could position South Korea as a more attractive jurisdiction for legitimate blockchain projects and digital asset development.