South Korea follows China in ICO ban

South Korea follows China in ICO ban

South Korea follows China in ICO ban

As the country's Financial Supervisory Commission commented on the published local news outlet FN News in September 3 - it was signaled that Issuing digital tokens will be declared illegal end of year. The strongest regulatory measures were taken by China, which earlier this month ordered a blanket ban on all forms of ICOs.

South Korea will prohibit initial coin offerings, or fundraising via cryptocurrencies, making it the latest nation to crack down on the increasingly popular practice over concerns about fraud. He advised industry players that "If it is a normal company with technology, it can raise money through transparent methods such as stock openings and crowdfunding".

Those funds, which have not begun trading, would be listed on NYSE Arca and follow Bitcoin futures contracts traded on the Chicago Board of Options Exchange, the filing said.

The ICO or a token crowdsale is a way of raising funds by selling digital tokens, typically based on the Ethereum platform.

The announcement triggered a sell-off in crypto markets.

"At any sign of vulnerability, the first reaction would be a mass selloff in ether".

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ASIC issues regulatory guidance on ICOs

South Korea said on Friday that it will ban individuals and companies from raising funds through digital cryptocurrencies.

This month, authorities also indicted four people on charges of illegally trading cannabis using bitcoin, the commission said.

Prices have been rebounding though today's game changing announcement out of South Korea could also yield a material impact to prices.

Despite China's ban, some issuers, such as the upcoming Dragon ICO, found a workaround by issuing tokens in Hong Kong.

Danielle Szetho, CEO of Australia's FinTech industry association FinTech Australia, said ASIC's announcement was "the clarification we have all been waiting for, and I feel it strikes a very good balance between helping start-ups looking to run an ICO in Australia while at the same time informing and protecting potential investors The guidance ASIC has released is a positive step to ensure a viable future for ICOs in Australia, and sits alongside other positive initiatives such as removing double taxation on digital currencies and driving worldwide blockchain standards".

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