We reported recently that China had decided to ban ICOs or initial coin offerings. The country has classified them as illegal fundraising and has dropped the banhammer on ICOs. It’s not the only country that’s against ICOs. South Korea has also joined China in banning initial coin offerings.
ICOs have been quite popular this year. Some estimates suggest that over $2 billion in funds have been raised through ICOs so far this year.
Reuters reports that South Korea’s financial regulator has said that raising money through ICOs will be banned. All kinds of ICOs will be banned as the country’s Financial Services Commission feels that trading of virtual currencies needs to be controlled tightly and monitored.
“Raising funds through ICOs seem to be on the rise globally, and our assessment is that ICOs are increasing in South Korea as well,” the regulator said in a statement, adding that it will issue “stern penalties” to parties or financial institutions found involved in ICOs.
However, it didn’t detail what these penalties might be. The government feels that ICOs can increase the risk of financial scams so it’s taking steps to ensure that the public isn’t dealt losses by those who are using ICOs to make a quick buck.
Filed in .. Source: reuters