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South Korea latest country to ban initial coin offerings

ASIC releases guide on initial coin offerings ASIC issues regulatory guidance on ICOs
Eleena Tovar | 02 Octubre, 2017, 02:35

Further, in the case of an ICO offering a financial product, the ICO operator may also require a market licence in order to sell tokens.

One of such is Token Lot which allows to directly buy tokens during the initial coin offering.

The commission noted that the rule will be enforced with "stern penalties". Consequently, news of the ban only had a minor effect on the markets, and they quickly recovered from that dip. Few western countries were likely to follow the lead of China alone, but the Korean decision could lead other Asian countries to look seriously at regulating cryptocurrencies more strictly; Japan is reportedly working on its own overhaul of cryptocurrency regulations, and it could decide to follow China and South Korea's lead.

Earlier this month, the People's Bank of China issued an official statement calling the token sales illegal domestically.

As a final note, ASIC reminds potential issuers about their compliance obligations and Australia's stringent laws concerning misleading and deceptive conduct in trade and commerce, in connection with financial services and in relation to financial products.

"Cryptocurrencies are at the heart of the future of finance". On September 23, the bitcoin price was trading below $3,800, but it gradually scaled the charts throughout the week. Another great example of the high hopes of market participants.

Meanwhile, the exchange-traded fund provider ProShares wants to set up two Bitcoin-exposed exchange traded funds - ProShares Bitcoin ETF and ProShares Short Bitcoin ETF, according to a regulatory filing with the SEC for the approval of those funds. The burgeoning ICO space is largely unregulated and ASIC is now warning investors on the risk of losing their cash. This translates into a market cap of $28.5 billion. The amount will exceed all raised capital in 2016 by more than tenfold from 64 major ICOs.

"Now it feels almost like the investment banking sector", said Lucas Geiger, co founder of Wireline, which has an ICO planned in the US on October 16. Crypto investors are eager to get as much as possible from every opportunity. "We think this is another sign of the Swiss regulator's clear and balanced approach to blockchain and Fintech". NEM rose 8%, while IOTA increased by 15%.