by Reuters.com
South Korea's financial regulator said on Friday it would ban money from all forms of virtual currency, a move that follows similar restrictions in China on initial currency offerings. The Financial Services Commission said that all types of initial currency offerings (ICOs) will be banned because virtual currency trading needs to be tightly monitored and controlled.
The Financial Services Commission said that all types of initial currency offerings (ICOs) will be banned because virtual currency trading needs to be tightly monitored and controlled.
Raising funds through ICOs appears to be increasing globally, and our assessment is that ICO's are growing in South Korea as well, "the regulator said in a statement following a meeting with the Ministry of Finance, the Bank of Korea and the National Tax Service .
"Severe penalties" will be issued to financial institutions and to any parties involved in the issuance of ICOs, he added, without elaborating further on those sanctions.
The decision to ban ICOs as a fund-raising tool was made because the government sees such issues as increasing the risk of financial scams. The ruling tracks similar ads in the US and China, where increasing trading volumes of crypto-coins are raising concerns. He added that Friday's announcement does not mean the government has implicitly accepted virtual currency trading as part of its financial system and will continue to monitor markets for additional regulations.
South Korea's financial regulator said on Friday it would ban money from all forms of virtual currency, a move that follows similar restrictions in China on initial currency offerings. The Financial Services Commission said that all types of initial currency offerings (ICOs) will be banned because virtual currency trading needs to be tightly monitored and controlled.
The Financial Services Commission said that all types of initial currency offerings (ICOs) will be banned because virtual currency trading needs to be tightly monitored and controlled.
Raising funds through ICOs appears to be increasing globally, and our assessment is that ICO's are growing in South Korea as well, "the regulator said in a statement following a meeting with the Ministry of Finance, the Bank of Korea and the National Tax Service .
"Severe penalties" will be issued to financial institutions and to any parties involved in the issuance of ICOs, he added, without elaborating further on those sanctions.
The decision to ban ICOs as a fund-raising tool was made because the government sees such issues as increasing the risk of financial scams. The ruling tracks similar ads in the US and China, where increasing trading volumes of crypto-coins are raising concerns. He added that Friday's announcement does not mean the government has implicitly accepted virtual currency trading as part of its financial system and will continue to monitor markets for additional regulations.