South Korean Government Crack Down On ICO´s
Some negative news coming out of South Korea. They have a regulatory body called The Financial Services Commission (FSC) and they are now saying the following:
"The Financial Services Commission (FSC) said it will prohibit all forms of the blockchain funding method "regardless of technical terminology," while margin trading of virtual currencies will also be illegal following the ruling."
"Token offerings, the fundraising method which has gained popularity in recent months, are overly speculative and constitute a "violation of the capital market law," the FSC states. An "intensive crackdown" will ensue, with "stern penalties" issued on parties involved in ICO offerings."
In conclusion, since South Korea is one of the largest crypto markets, this will hinder new ICO´s coming out to the market and Koreans might be hesitant to buy cryptocurrencies.
However, ICO´s and creative innovators will move to other countries and continue their work, so I only see this as a short term issue.
Source:
https://www.coindesk.com/south-korean-regulator-issues-ico-ban/
This news needs some extra attention, because no one would expect banning of ISOs in South Korea.
Yeah, I havent seen much reactions yet, this news is about 11 hours old.
One would think something like this happens only in China, but not S Korea.
i guess, but never underestimate governments, taxes are everything for them...
They don't wanna lose their monopoly of monetary power, this is an act of tyranny, i think.
And my local exchange finally allowed fiat transfers as a deposit after a month of "this service is currently unavailable"...interesting timing.
aha, in what country is this exchange?
@freeforever Well This could still all be temporary, with a ban only targeting unapproved icos.
Let's hope so... in the long run it most likely has no real influence... people that insterested in crypto and want to participate always finds a way around :)
great post btw. upvoted and followed you friend. looking forward to more great posts from you 🙌
Thanks.
I agree with you, it will just be one of many bumps on the road going forward
sure will @freeforever crypto's are here to stay, and grow.
The hardfork to bitcoin gold will will actually be a good thing in october, and people won't mind free money again, just like bitcoin cash, but the next big dip could be if segwit2x will be implementet in november... that could cause a crash