South Korea Announces Across-The-Board Ban On Token Offerings

South Korea Announces Across-The-Board Ban On Token Offerings

The digital currency's value surged over the summer to around $5,000.

Earlier this month, news circulated that the Chinese financial regulator banned all Initial Coin Offerings and forced cryptocurrency exchanges to shut down their operations until the end of September. The decision tracks similar announcements in the USA and China where increasing trading volumes of cryptocurrencies are sparking concerns.

South Korea's Financial Services Commission (FSC) has announced a ban on all token offerings, popularly known as "initial coin offerings" (ICOs), in the country.

But the lack of oversight has attracted criminals, with some estimates showing about 10% of all ICO funds being stolen by thieves.

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 announcement triggered a sell-off in crypto markets.




"ICOs are highly speculative investments, are mostly unregulated, and the chance of losing your investment is high", ASIC commissioner John Price told the Sydney Morning Herald. It plans to usesmart contracts on the Ethereum blockchain to pair up buyers and sellers automatically, eliminating the need for a central authority to match trades.

ASIC also considers circumstances and implications as to when the platform making the ICO could be characterised as a financial market or fall under the new Crowd Sourced Funding regime.

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

South Korea's financial regulator said on Friday it will ban money raising through all forms of virtual currencies. Kim Jin-Hwa, co-founder of the South Korean cryptocurrency exchange Korbit, a 65 percent share of which was recently purchased for the equivalent of roughly $80 million, predicted that the move would curtail domestic investment.

This month, authorities also indicted four people on charges of illegally trading cannabis using bitcoin, the commission said. The governments of the U.S., Hong Kong, and the United Kingdom have also issued warnings to investors that are planning to invest in Initial Coin Offerings.

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