South Korea Persists on a Ban
South Korea continues to ban initial coin offerings (ICOs) in the country, the state financial regulator, the Financial Service Commission (FSC) confirmed in a press release on January 30.
Through the results of a survey conducted in September 2018, the body learned that firms carrying out ICOs were making use of foreign jurisdictions, but still raising capital from South Korean nationals.
The nation officially banned ICOs in September 2017 and highlighted the issues associated with the token offering method. Lack of stability and susceptibility to manipulation were the primary reasons to stop citizens from investing in crypto tokens.
“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,” local news outlet FN News quoted an FSC official.
Chances of reversal appeared in August last year after the National Assembly began debating the ban, but there were no signs of lifting the ban.
The press release stated, “The government has taken cautious stance on the institutionalization of ICOs. We will stick to it.”
According to the survey, Singapore and Switzerland were the most popular regions to conduct ICO. The survey included a total of 22 firms out of which only 13 responded, as mentioned in the press release.