It is reported on Friday that South Korea will no longer accept cryptocurrency sales. Thus it will ban raising funds through cryptocurrencies. Though, it is similar to China’s ban on Initial Coin Offerings recently which has resulted in closure of reputed cryptocurrency exchange of China.
However, ICO will be strictly monitored and controlled and banned as a form of trading the virtual coins.
At the meeting with the finance ministry, the Bank of Korea and the national Tax service. The regulator stated “Raising funds through ICOs seem to be on the rise globally. And our assessment is that ICOs are increasing in South Korea as well,”
The statement further added a brief about “stern penalties”. Though details are still unexplained but the penalties will be issued on financial institutions and parties involved who is issuing ICOs. The ban is backed by high risk of financial scams in South Korea. This is a similar reason as US and China announced ICO ban recently.
The announcement doesn’t assume accepting virtual currency trading as its financial system. And continue screening the market to see if any regulations are needed.