South Korea Bans Initial Coin Offerings – Plans to Crack Down on Trading

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South Korea’s financial regulator banned initial coin offerings (ICOs) today after a meeting of the Financial Services Commission (FSC) in the capital city of Seoul.

In a report online (in Korean) the FSC stated it will prohibit all forms of the ICOs, no matter what kind of technical array or token design is involved. The government has not accepted trading of virtual currencies as part of its financial system, and will continue to monitor markets to see additional regulations are needed. And regulators intend to crackdown on ICOs and hit them with stern penalties.

The Commission’s statement states that ban was made because “market funds are being pushed into a non-productive speculative direction”, also noting that cryptocurrencies are known to have been have been used in several crimes, may be being used as a means of laundering money and that some ICOs may be frauds.

It also points out that ICOs have attracted regulators’ attention in other nations, for the same “quack-like-a-stock, look-like-a-stock” reasons that worry the USA’s SEC.

They also note on a wave of recent arrests of criminals running completly fake ICOs who raised  25 billion KRW ($22 million) from over 1,000 investors. Due to such criminal activity, a new “Virtual Currency Detention Centre” has been created, the release states.

The decision of its Financial Services Commission is likely to have a negative impact on the cryptocurrency markets.

 

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About Richard Kastelein

Founder and publisher of industry publication Blockchain News (EST 2015), a partner at ICO services collective Token.Agency ($750m+ and 90+ ICOs and STOs), director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of some two dozen Blockchain startups and has written over 1500 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat. Irish Tech News put him in the top 10 Token Architects in Europe.

Kastelein has an Ad Honorem - Honorary Ph.D. and is Chair Professor of Blockchain at China's first Blockchain University in Nanchang at the Jiangxi Ahead Institute of Software and Technology. In 2018 he was invited to and attended University of Oxford's Saïd Business School for Business Automation 4.0 programme.  Over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division.

Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London (5x), Manchester, Minsk, Nairobi, Nanchang, Prague, San Mateo, San Francisco, Santa Clara (2x), Shanghai, Singapore (3x), Tel Aviv, Utrecht, Venice, Visakhapatnam, Zwolle and Zurich.

He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com, and his work and ideas have been translated into Dutch, Greek, Polish, German and French. A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world. In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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