South Korean financial watchdog sticks to the decision of banning ICO

03 Feb, 2019 | Updated: 03 Feb, 2019
by Fifi Arisandi
South Korean financial watchdog sticks to the decision of banning ICO

South Korean financial regulator sticks to their decision of banning ICOs in the country. 

A new update has emerged from the South Korean financial authority, the Financial Services Commission (FSC).

The financial regulatory decided to maintain the ban enforced towards ICOs, based on the findings of the Financial Supervisory Service (FSS).

Started September last year, the FSS conducted a survey to 22 enterprises in the country that had launched ICOs, on which they only received feedbacks from 13 of them.

The FSS found out that in some cases, the startups intentionally presented inaccurate information while conducting their ICOs, which includes “the concealment of basic background information of companies to investors”.

The 3-month survey also revealed a concerning fact that several crypto startups have engaged in fraudulent activities, such as raising money from Korean investors despite the ban and their claim of conducting the ICOs overseas.

Referring to the findings, the FSC decided to maintain the ban that has been enforced since September 2017, as reported by Bitsonline

The strict regulation on ICOs has caused many Korean startups to migrate to ICO-friendly countries, such as Singapore and Switzerland. But somehow, they still manage to get majority of the funds from Koreans, which the FSC claims to have reached a substantial amount of $509 million combined.

Read more: South Korea's central bank says there are no plans to launch a CBDC anytime soon

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Read more about: ICO South Korea

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