Following China, South Korea's financial regulator also decided to ban the country's financing operations through the ICO (a form of attracting investments in the form of an initial placement of coins or tokens). The given decision is caused by risks of growth of number of financial swindlers.
Note, after the recent ban of ICO operations in China, South Korea's share of the trade in crypto-currencies has risen sharply. The Commission for the Supervision of the Financial Sector of South Korea (FSC) noted the growing popularity in South Korea of ICO as a way to attract investment. At the same time, cases were recorded when funds went into unproductive and speculative spheres, said vice-chairman of FSC Kim Yong-bim. Therefore, it was decided to limit the use of this tool in the country.
All types of ICO fall under the ban. The trading of virtual currencies must be strictly controlled, stressed in the FSC. The Commission threatened to impose fines on all financial institutions and individuals who will participate in the ICO. However, it is not specified what kind of responsibility will be assigned to violators in the event of their detection.
Against the backdrop of the decision of the Korean authorities, the cost of Bitcoin has fallen by almost 2%. It should be noted that the price reduction was not as significant as in the case of the ICO ban in China. Then the fall was about 20% of the cost or about $ 1000.
At the same time, the supervisory authorities of Japan are more supportive of crypto-currencies. Thus, the State Agency of Financial Services of Japan approved 11 companies as exchange operators for the exchange of crypto-currencies. It is noted that such operators must meet certain requirements. They are obliged to create a powerful computer system to ensure the stable operation of the exchange, to ensure the identification of the clients' identity, and also comply with anti-money laundering norms and fulfill other requirements.
In addition, Japanese officials said that they do not plan to prohibit the use of funds through the ICO. Although several such proposals have been received.
The Japanese authorities recognized bitcoin and other crypto currency as payment means in April 2017. This was promoted by the increased interest of Japanese investors in the crypto currency, against the background of its sharp growth. All companies wishing to deal with crypto currency exchange must register with the government.