Initial Coin Offerings or ICOs “re no longer” legal in South Korea.
The country’s regulator, the Financial Work Commission( FSC ), issued the prohibitions following a satisfy Friday, concluding that ICOs are pushing the market into a “non-productive speculative direction.”
The regulator has also censored margin trading on cryptocurrencies.
The move comes weeks after China’s financial regulator banned all ICOs in the two countries, giving a setback to this booming method of fundraising. South Korea’s regulator announced that a ban might be imminent in early September, warning that it would “strengthen high levels of punishment” for “illegal fund-raising.”
The ICO or a token crowdsale is a way of conjuring monies by selling digital clues, typically based on the Ethereum platform. These clues are different than busines stock in the appreciation they rarely give its owners direct owned of the company behind the ICO. They may have other importance; usually the clues accommodate a means to actively participate in the startup’s programme, and they are unable frequently be sold for other cryptocurrencies, such as Bitcoin or Ethereum.
But several regulatory bodies, including those in the U.S ., China, Hong Kong, Singapore and Russia, have already been was indicated that lack of regulations has altered ICOs into a playground for scammers.
China has followed the ICO ban with a country-wide injunction of cryptocurrency exchanges; it’s unclear whether South Korea plans to do anything similar. Earlier the coming week, South Korean app manufacturer Dunamu and U.S. cryptocurrency exchange Bittrex announced a batch to launch a brand-new cryptocurrency exchange in South Korea called Upbit.
The priced of Bitcoin and Ethereum are maintaining pretty well following the bulletin. After a short-lived trough, the prices( $4,200 and $296, respectively) are approximately “where theyre” 24 hours ago.
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