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Tuesday, September 21, 2021
Home News South Korea Bans Initial Coin Offerings - Plans to Crack Down on...

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

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.

 

Richard Kasteleinhttps://www.the-blockchain.com
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, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has 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 at over 50 events in 30+ cities.
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