This is the South Korean news post that has sparked the latest round of panic and maybe even market price fluctuations in the cryptocurrency world. In the post the Korean regulator (Financial Services Commission) states that raising money through initial coin offerings (ICOs) for all cryptocurrencies is now prohibited.
Original Korean News Post Source: http://news1.kr/amp/articles/?3114917
This issue has been reported on many news and financial websites in the past 24 hours including the following:
So What Does This Mean?
Until now 2 countries have banned Initial Coin Offerings, the list of countries currently comprises of China and South Korea. This means that 2 countries prohibit ICOs and people who want to try and raise money through initial coin offerings can not do so from China or South Korea and probably should also not try and collect money from investors in those countries, also in the USA the SEC has charged an ICO operator with fraud so ICO operators should also be wary when collecting money from investors in the USA.
On one hand this may be good as we have been witnessing many scams and frauds in the ICO industry and it’s a good idea that regulators are now prohibiting these kinds of behaviors.
On the other hand this also looks like big brother is trying to take control of the cryptocurrency markets, because the cryptocurrency are endangering the future health of the regular financial markets that currently dominate the investing world.