South Korea Issues Ban on ICOs

South Korea Issues Ban on ICOs

The Australian Securities and Investments Commission (ASIC) has issued regulatory guidance on initial coin offerings (ICOs).

The decision follows other financial regulators around the world that have grown cautious about the rapid development of unregulated digital currencies.

"Stern penalties" will now be slapped on any company or individuals issuing ICOs, according to the regulator.

The country will no longer allow "initial coin offerings" (ICO), in which people and small companies raise funds for startups by selling tokens.

Kim Hyung-Joo of the Korea Blockchain Industry Promotion Association disagreed, opining that blockchain technology will be the basis for the "fourth industrial revolution in Korea", and calling the government's attitude towards cryptocurrency "not appropriate", according to a translation of his comments.

Switzerland does not have rules governing conduct specifically for ICOs.

More news: We're about to see a whole lot more Canadian content from Netflix

Swiss ICOs have largely been run by foundations based in Zug, Switzerland's "Crypto Valley". That said, it's now unclear how, exactly, the country would attempt to regulate crypto.

In addition, she said it spoke of the regulator's willingness to adopt a collaborative approach towards working with the fintech community, who are looking to either assist or engage in crowd-funding through ICOs whilst also meeting their regulatory obligations. These include a record-breaking "token gathering" by Tezos, which in July raised the equivalent of $230 million-$240 million in bitcoin and ether.

The Australian government has introduced a bill to remove double taxation of cryptocurrencies such as bitcoin. News of the ban roiled the cryptocurrency market however, sending Bitcoin and other digital currencies such as Ethereum plunging to multi-month lows.

Regulators and traditional banks are increasingly concerned about the risks of fraud and money laundering in the burgeoning online cryptocurrency underworld.

For now (as time of the press) Bitcoin price has decreased around 2.84 percent in the last 24-hours (on Friday Sep 29), which is following after hitting the nearly monthly highest and retesting supports around $4,000.

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