South Korea’s financial regulator prohibits domestic companies and startups in raising money through initial coin offerings (ICO)

Briefing

South Korea’s financial regulator prohibits domestic companies and startups in raising money through initial coin offerings (ICO)

September 30, 2017

Briefing
  • ICO Ban – South Korea’s Financial Services Commission (FSC) announces ban of all forms of blockchain funding method, while virtual currency trading remains illegal, following recent restrictions of ICOs in China
  • Increasing Control – FSC aims to tightly control and monitor trading of virtual currencies through on-site inspections, intensive crackdown, and stern penalties, as risk of financial scams increases through ICO fundraising
  • Next Steps – South Korean government states that new regulation does not mean they have accepted virtual currencies as part of financial system and will continue to monitor market to explore additional regulations needed

Accelerator
Web3 Ecosystems, Tokens and Consensus Mechanisms

Market Disruption
Crowd-Based Financing, Innovation, Competitiveness and Trade

Sector
Financial Services

Source

Original Publication Date
September 29, 2017

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