Following China, South Korea decides to ban ICOs

South Kora bans ICOs

The announcement arrives after speculation on the subject

South Korea has decided to ban all the initial coin offerings (ICOs) after the Chinese attack oncryptocurrencies at the beginning of September. The country’s Financial Services Commission
(FSC) announced on Friday 29th that all the ICOs must be banned because investments in
cryptocurrencies “are being pushed into a non-productive speculative direction”.
After rising concerns from different countries over the ICOs and cryptocurrencies, South Korea
decided to take a similar path to the one that China took earlier on September banning all the
ICOs. Due to “increased financial scams” the Republic of South Korea, as well as other
countries like the US or China, is worried about the inflow of money into those methods of
crowdfunding via cryptocurrencies.
The government did not specify whether the ban will be implemented soon in the future or after
the draft of a proper and clear regulation. Fears are arising in the South Korean cryptocurrency
sphere that talents and investments would be done in countries with a friendlier approach on the
matter as Japan, Singapore, Taiwan as well as the Middle East.
ETH and BTC prices went down around 6% after the FSC’s announcement. Even though the
markets didn’t take a long time to recover and came back to the prices they had before South
Korea’s decision.