According to a press release from the Financial Services Commission of South Korea that reached our crypto news today, the country will continue its ban on initial coin offerings (ICOs).
The government body examined and published the results of a survey conducted in September 2018 and they claim to have discovered multiple companies that proceeded with an ICO while making use of foreign jurisdictions but still somehow managed to raise funds from the South Korean nationals.
The country formally and officially banned ICOs in September 2017 due to lack of stability and the easy opportunity of manipulation in order to protect the citizens and stop them from purchasing cryptocurrency tokens.
The Financial Services Commission was quoted by the local news outlet FN news saying:
“If there is an unlawful act, a third party has to intervene, but it is difficult to intervene until the transaction volume or price soars.’’
A glimpse of hope appeared last year in August after the National Assembly started a debate about the ban but the sentiment of the debate had clearly turned bearish:
“The government has taken a cautious stance on the institutionalization of ICOs. We will stick to it.’’
According to the survey, Singapore and Switzerland are one of the most popular places to start an ICO among the companies that responded to the financial services commission. About 22 companies took part in the survey but only 13 responded.
In general, ICOs have really suffered in 2018 because of the on-going crypto bear market. Many tokens are struggling and trading below their original sale price as well.
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