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S. Korea reaffirms ban on initial coin offerings

2018/10/11 16:48

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SEOUL, Oct. 11 (Yonhap) -- South Korea's top financial regulator on Thursday rejected calls for the government to allow initial coin offerings, saying raising money through virtual coins is too risky.

Financial Services Commission (FSC) Chairman Choi Jong-ku told a parliamentary audit meeting that the government aims to promote the blockchain industry, but will maintain its strict regulations on cryptocurrency exchanges.

"Although many people call for the government to allow initial coin offerings, there are still uncertainties related to such a move as well as the possibility of serious fallouts," Choi said during the meeting.

FSC Chairman Choi Jong-ku speaks during a parliamentary audit meeting in Seoul on Oct. 11, 2018 (Yonhap) FSC Chairman Choi Jong-ku speaks during a parliamentary audit meeting in Seoul on Oct. 11, 2018 (Yonhap)

South Korea banned all forms of initial coin offerings in September last year, joining a wave of global regulations against the popular fundraising scheme with cryptocurrencies.

Initial coin offerings allow start-ups or individuals to raise funds by offering cryptocurrencies.

Financial authorities around the world have issued warnings against such developments, saying they could lead to an asset bubble and that investors are vulnerable to scams or market manipulations.

kdh@yna.co.kr

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