Korea’s ICO Regulation Update
ICON is focused on is gathering all the facts and provide our community with the best and most transparent information relevant to ICON only. During the past week, we received many inquiries regarding this announcement and we are aware of the concerns voiced by our community. Today, we want to say thank you for your patience and understanding.
As you may be aware, Korea’s financial regulators, or Financial Services Commission(FSC), announced prohibition of all new cryptocurrency sales just before the Korean Lunar Holiday Chuseok. As mentioned in the FSC announcement, the new Korea’s ICO regulations is a response to increased ICO scams and an attempt to protect consumers.
The FSC announcement was an official statement and should be taken very seriously regardless of the ICO ban not being fully effective, yet. Currently, we believe many areas of the announcement need to be clarified or elaborated. We expect regulators to follow up with more detailed plans in the future. We promise to keep you posted with the latest updates.
With the limited information that we have, we believe that the recent ICO regulation in Korea will not have a negative material impact on ICON’s ongoing business due to the following reasons:
- ICON’s token sale officially ended on September 20, 2017, prior to FSC announcement date;
- FSC is only restricting domestic ICOs, whereas ICON is a foreign non-for-profit entity; and
- Similar to other leading countries, ‘Utility Tokens’ (like ICX) will eventually be permitted.
Again, we take the ICO announcement very seriously will continue to monitor the development. And again, we’d like to thank our community for your patience and understanding.
Hyperconnect the World