the The South Korean ban on the Initial Coin Offerings. The competent financial authority Financial Services Commission (FSC) has decided, after evaluation of a company survey, to the ICO prohibition.
By Christopher clover
At the 1. February 2019BTC$3.454,92 0.64%part Facebook Twitter LinkedIn xing mail
In South Korea, the 2017 remains in place, which entered into force prohibition of the Initial Coin Offerings. The South Korean Financial Services Commission (FSC) announced on 31. January in a press release known. The FSC justified the decision with the results of a survey, which was conducted in September of 2018, the financial Supervisory authority Financial Supervisory Service (FSS). In it, South Korean companies have held a ICO abroad, should take, account of their corporate structure.
Apparently, the answer could not convince the FSS, to loosen the regulatory thumb screws for domestic ICOs. The survey has shown that many companies have bypassed the ICO prohibition. A popular approach is to build a letter box company in the ICO-friendly Singapore, at the same time, however, the White Paper and the advertisement of the project to leave on South Korea. In this way, the ICOs were able to tap into the South Korean investors in people in spite of the ban. Since the second half of 2017, the companies were able to take around 500 million dollars.
The FSS criticized the lack of disclosure of information, for example with regard to the use of the collected funds. Also, the projects themselves were often described is unclear, there is a lot of suspicion of activities that violate the South Korean capital market act. The risk for investors remains very high. The tokens of the studied ICOs should have recorded until the end of 2018, an average loss in value of 67, 7 per cent. The FCA will want to capture all of these reasons, at ICO-ban.
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in Spite of the ICO’s critical stance, South Korea is considered a country that promoted the adaptation of the Blockchain and other Disitributed Ledger technologies by million-dollar investments, as well as a “regulatory sand box”. In this Blockchain can put themselves to the test-companies in close co-operation with the regulators. In addition, it has been the capital city of Seoul to the declared aim, to be by 2022, a Blockchain-center.
