Any hopes of South Korea reversing its 2017 ban against Initial Coin Offerings (ICOs) was dashed following a discovery by authorities that some projects are still employing dirty tactics during its fundraising.
According to CoinDesk, the South Korean Financial Supervisory Service (FSS) carried out a survey involving local crypto projects which launched their ICOs on foreign shores
It turned out that most of the companies who claimed to have moved to foreign countries especially Singapore, still raised money from South Korean investors, even though the national ban against ICOs was supposed to make this move impossible.
The FSS found that local investors were taking part in foreign ICOs conducted because of marketing materials and white papers that the projects wrote in the native language.
Another crime discovered from the FSS survey is that most of the ICOs failed to give detailed information about their business. For instance, they did not disclose their financial statements or company profile to the investing public.
Some went even further to disclose false information about their business so that unsuspecting investors would fall into their plot.
Finally, the fact that the total value of the tokens issued by these ICOs following their launch has fallen by over 67% is a reason why the South Korean Financial Services Commission (FSC) said it would not reverse the ban.
Only time will tell whether the South Korean authorities will follow steps of Iran by reversing its ban on the crypto industry through regulation.
India, another Asian country that banned cryptocurrencies in the past has already taken steps to correct that stance. India could legalize cryptocurrencies later this year to become the second major Asian government to do so, after Japan.
China and South Korea, mentioned in this report, are the other significant countries that are still holding out a tough approach on cryptocurrencies.
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