South Korea bans initial coin offerings

South Korea stated as we speak that it plans to ban raising cash via preliminary coin offerings (ICOs) for all cryptocurrencies, according to Reuters. The country’s Monetary Providers Fee stated that each one ICOs have to be banned as a result of the trading of Bitcoin and other cryptocoins must be tightly controlled. Violators of the new ban will obtain “stern penalties,” but no particulars of what these penalties shall be have been offered.

As ICOs improve in amount and scale, they’ve attracted the eye of presidency regulators in numerous nations. This yr alone, ICOs have raised almost $2.3 billion in funds up to now, according to Coindesk ICO tracker data. China banned ICOs earlier this month, saying that they disrupted the nation’s monetary order.

The ban comes after South Korea observed that “elevating funds via ICOs seem to be on the rise globally” and domestically, the Financial Providers Commission stated in a press release after assembly with the national financial institution, tax, and finance officials, according to Reuters. In any case, ICOs can range from critical makes an attempt to construct extra digital currencies to more risky plans that resemble pyramid schemes, according to some financial experts’ analysis in the past. In addition to banning raising cash by way of ICOs, Korean regulators might actual more measures to regulate cryptocurrencies after continuing to watch the state of affairs.



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