Amid worries about the lack of understand the crypto market structure, the Korean Financial Services Commission (FSC) has reaffirmed its ban on all ICO issuance in the country, according to Newspim- the local media outlet in the country.
The Financial authorities in the country had had serious concerns the last year regarding ICO issuance, as cryptocurrencies raised in their prices well above the international average.
In their turn, officials in the Korean government described the trading habits of individuals in the market as “problematic for society”.
On the other hand, the Financial Supervisory Commission support the prohibition of ICO due to uncertainties in business planning and weak investor protection rules.
We should consider the pathological tendencies and unique market structure related to cryptographic investment in Korea at present.” He added, “As the G20 conference and other international discussions are in full swing, we will closely monitor and deal with the situation carefully.”, stated an FSC official.
The official stressed as well that a disciplinary system should be established for dealing with cryptocurrencies, adding “At present, it is necessary to promote system improvements in areas where international consensus, such as money laundering prevention, is formed and regulations are strengthened.”
Business Exodus Outside the Country Has Started
In the light of the ban, reports point to an exodus movement of Korean companies to more tolerant and crypto-friendly countries like Singapore and Malta, especially those companies which hoped to raise funds through ICO.
It is worth mentioning that Min Byung-doo (a Democratic Party lawmaker), said “Since there has been no follow-up policy in regard to the ICO ban last September, Korea’s block-chain industrial competitiveness is only about 75 percent of that in the US, which is an advanced country. This is something we all should be worrying about.”
1- People are in panic selling after the stock market hick-up, forgetting that cryptos are like gold, safe heaven.
2- Korea, while being a crypto pioneering country once again is not positive about ICOs. However, ICO negativity should mostly have bearish impact on Ether and Stellar, which is what we are seeing as well.”.
Market researchers read the step as being the reason behind the sharp fall in prices that dyed the market over the last night with expectations for the move to continue for a few days.