Seoul by twilight. Photo credit: aomami / 123RF Stock Photo.
The news (extracted from Reuters):
- South Korea’s Financial Services Commission announced today it will ban raising money through all forms of cryptocurrencies – what’s known as ICO or initial coin offering.
- The commission will hit any firm or party involved in issuing of ICOs with “stern penalties,” although details are not available.
- The regulator arrived at this decision after meeting with the finance ministry, the Bank of Korea, and the National Tax Service.
Why it matters:
- South Korea is the second country to outright ban ICOs after China, which cracked down on token sales earlier this month.
- ICOs are proving very profitable for companies, with nearly US$2 billion raised through token sales in 2017 so far.
- Regulators worldwide are still unsure how to deal with token sales. Singapore’s MAS is currently considering the issue, while the SEC in the US is putting together a “cyber unit” that will look into suspicious token sales, among other matters.
Editing by Judith Balea
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
