The financial regulators in South Korea are working on a plan to allow initial coin offerings (ICOs) in the country for domestic investors, according to The Korea Times.

In a meeting held in September 2017 attended by the Korean finance ministry, the Bank of Korea, and the National Tax Service (NTS), the Financial Services Commission (FSC) said that it will ban all fundraising activities in the country conducted through virtual currencies.

The authorities are now planning to reverse the ban in order to advance blockchain-based technologies, sources familiar with the matter told the local publication.

"The financial authorities have been talking to the country's tax agency, justice ministry and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met," the source said.

Kang Young-soo, an official overseeing cryptocurrency trading policies at the FSC, said the regulator has yet to decide whether to allow ICOs in Korea for domestic investors and companies.

"There are many speculating about the possibility of allowing ICOs. The FSC has acknowledged a third-party view regarding the issue, but there's nothing that we can say officially at the moment," Kang said.

Another source said that ICOs would be allowed in Korea only after the country has an appropriate legal framework for cryptocurrency trading in place.

"Various scenarios such as the imposition of value-added tax, a capital gains tax, or both on trade; and the collection of corporate tax from local cryptocurrency exchanges, as well as the initiation of authorized exchanges with licenses are being discussed," said the source.