South Korea Plans to Crackdown on ICOs


Accoring to a report in Business Korea, the South Korean government has stated they will punish initial coin offerings (ICOs) that raises funds in the form of stock issuance using digital currencies permitted in some countries, including Switzerland, for violating the capital market act.

Kim Yong-beom, the secretary-general of the FSC who chaired the task force meeting, stated in the report from the Korean media:

“At this point, digital currencies cannot be considered money and currency not financial products.”

They are also planning to examine the current conditions of digital currency traders and establish joint inspection systems with the KFTC, prosecution, police and NTS.

An official from the KFTC added:

“For issues that haven’t formed the international consensus such as the character of digital currency traders, permission and taxation, we will come up with counterplans by thoroughly analyzing the discussion and regulation trends of other countries and international organizations and fully discussing them.”

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