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Tan Gui Ong
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Shaurya Kumar Sinha
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Charles J Phua
CEO of FoodHub
All Initial Coin Offerings (ICOs) fundraising activities are now illegal. "Stern penalties" for those caught.
BEAM 7 Nov, 2017
South Korea announced recently that all Initial Coin Offerings or ICOs (the new tokenization method which many startups use to fundraise) are now illegal.
South Korea's FSC passed the final ultimatum that supervision and monitoring over ICOs need to be in place before it can be widely used.
This outcome is highly likely due to the concerns that cryptocurrencies have been used as a mechanism to raise significant amounts of money from the public.
Although a large number of ICOs have been used to fund legitimate operations to date, many phishing and cyber scams have also taken place.
“Raising funds through ICOs seem to be on the rise globally, and our assessment is that ICOs are increasing in South Korea as well,” South Korea’s financial regulator mentions.
South Korea's financial regulator also mentioned that stern penalties will befall on those caught continuing to issue ICOs to the public. Details of the penalties were not mentioned.
This recent announcement takes place following a similar decision made by China last month, though this may not be permanent.
Many other countries like The U.S., Hong Kong, Canada have also begun regulating ICOs, though none have taken drastic measures to ban the activity.
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