Reuters: South Korean government bans ICO form of financing activities

nnHong Kong financial regulators issued a statement saying it would ban all forms of ICO financing activities, and will strictly control and monitor the virtual currency transactions. The statement also said that the financial institutions involved in the issuance of ICO and any party will be “severely punished”, but the statement did not specify the details of these penalties. The statement also states that the move does not mean that the government defaults to accept virtual currency transactions as part of the country’s financial system. Following the United States and China, South Korea also began to ICO to take strict regulatory measures.n
nTranslation: Clovern
Seoul (Reuters) – Today, South Korean financial regulators have said they will ban the issuance of various forms of virtual currency financing, after the Chinese government has just adopted a similar regulatory approach to the ICO financing model.n
The Korea Finance Committee said it would ban all kinds of first-time digital currency issuance (ICO) activities, while virtual currency transactions also need to be strictly controlled and monitored.n
The regulator issued a statement after meeting with the Ministry of Finance, the Bank of Korea and the State Administration of Taxation,n
n”At present, the activities of financing through the ICO are on the rise, and it is estimated that the ICO activities in Korea are also increasing.”n
nThe statement also adds that financial institutions and any party involved in the issuance of ICO will be subject to “severe penalties”, but the statement does not specify the details of these penalties.n
As a result of the Government’s belief that there is a high risk of financial fraud in ICO activities, it has decided to ban the ICO financing tool. The decision, similar to the recent announcement in the United States and China, suggests that the growing volume of encrypted currency trading is worrisome.n
The announcement also underscores that Friday’s announcement does not mean that the government’s default to accept virtual currency trading is part of the country’s financial system, and that the agency will continue to monitor the market to see if additional regulation is needed.n

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