South Korea’s general ban on ICOs could end after the Central Bank of Korea speaks out in favor of policy change.

The ban was first implemented in late 2017 as cryptocurrencies became popular in the country and the government responded with a series of drastic measures. However, many large businesses claim that the ban has blocked many holdings seeking to launch crypto assets as part of their future-focused business expansion plans.

South Korean Firms Cannot Achieve Their Goals Due to ICO Ban

Since the ICO ban went into effect, companies like Kakao and Hyundai Group have had to issue tokens through overseas affiliates in places like Switzerland and Singapore. However, companies are trying to lift the token ban through local channels. President Yoon Seok-yul, who came to power in May, expressed his readiness to lift the ban.

Companies like OK Financial Group and SK subsidiary SK Square have announced their intention to issue tokens, and it looks like many companies will follow suit.

The latest call from the Central Bank of Korea could be the last hurdle to ban. Newsis reports that the bank has published an article on the impact of the EU’s crypto regulation and includes recommendations for the South Korean government.

In the article, the Central Bank of Korea clarified that although it warned that all ICOs should be subject to regulatory scrutiny, any new crypto-specific legislation should allow the issuance of new domestic crypto-assets institutionally.

The bank stated that the EU measures proved that it could apply the same similar regulation to ICOs as regulators do to crypto exchanges.