Following China’s footsteps, South Korea has banned the sale and trade of all new cryptocurrency. This directly affects ICOs and the country’s government has issued a stern warning to anyone attempting a new ICO. South Korea’s financial regulator issued a statement after a consultation with the government, where they said, “Raising funds through ICOs seem to be on the rise globally, and our assessment is that ICOs are increasing in South Korea as well.”
This comes on the heels of a series of governments announcing their unease at the probability of financial fraud through ICOs. USA and Singapore have deemed some regulations to ensure that ICOs at least have a product and a detailed whitepaper. Japan’s FSA went a step ahead and laid out the regulations for almost all cryptocurrency exchange operations.
However, contrary to other reports, the South Korean financial regulator explicitly mentioned that this is not a ban for cryptocurrencies in the market. It is monitoring its use and said that it will enforce regulations in the case of malpractice.
While this might look like a restrictive measure, we believe that regulating ICOs will only make the quality of ICOs better. Over time, we will see more legit teams making products that solve real-world problems. We should be looking at this a good news for the entire cryptocurrency industry. The only thing to look for is a faster resolution on ICOs, as China is yet to make any progress on this front.
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Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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