The South Korean authorities has up to date its stance on preliminary coin choices (ICOs) in addition to introduced the outcomes of its 3-month investigation of ICO actions carried out by Korean firms. The authorities discovered that many firms have bypassed its ICO ban and performed token gross sales abroad.
ICO Policy Update
The South Korean authorities introduced on Thursday the end result of its investigation of ICO actions performed by Korean firms in addition to the longer term course it’s taking up ICOs.
“With requests to allow ICOs piling up, the government investigated 24 companies and their offerings for three months starting September [2018],” The Investor reported, including:
The Korean authorities on Jan. 31 stated it should keep a strict ban on preliminary coin choices, saying {that a} three-month investigation proved they’re very dangerous.
“We will continue to remain cautious about systemizing ICOs,” the workplace underneath the Prime Minister’s Secretariat was quoted by the information outlet as saying. “If we suggest guidelines, it can be understood that we approve of ICOs which is a risky investment option.”
The Korean authorities banned home ICOs in September 2017. In December final 12 months, a startup filed a constitutional criticism in opposition to the federal government claiming that the ICO ban is unconstitutional.
Results of 3-Month Investigation
The South Korean Financial Supervisory Service (FSS) performed an ICO investigation from September to November final 12 months. Twenty-four native firms with ICO tasks had been requested to cooperate on a voluntary foundation. The authorities despatched them a questionnaire and inspected their whitepapers and press releases. The outcomes from 22 firms had been analyzed.
The intention of the investigation was to investigate ICOs performed by Korean firms and set up correct responses, the federal government stated on Thursday.
The regulator discovered that not one of the firms have truly launched their tasks however they’re all growing platforms or finishing up take a look at services, The Investor elaborated. “Most of the 22 companies were set up as an overseas paper company and carried out ICOs overseas, but were intended for the Korean market.”
The authorities’s official announcement states that “domestic companies have conducted many ICO overseas,” thus bypassing the federal government’s ban. They have established subsidiaries overseas, resembling in Singapore, with lower than 10 million received (~$8,945) in capital and a mean of solely three workers together with the manager of the native firm.
Meanwhile, every new token trades at 4 exchanges on common, with its value generally falling 68 % after the primary day of buying and selling. The FSS has also discovered circumstances of unlawful ICO actions such because the issuance and buying and selling of safety tokens in addition to the promoting of funding funds, the federal government detailed.
The Office for Government Policy Coordination was quoted by The Investor as saying:
There had been circumstances of necessary funding info lacking, resembling firm introduction, enterprise plans and monetary statements … Especially, there was no disclosure on how these funds had been used and most of them refused to reply the monetary authorities’ request.
What do you consider South Korea’s ICO stance? Let us know within the comments part below.
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