Cryptocurrency startup companies are trying to get their funds through initial coin offerings (ICOs) to start their business. But there are several questions about how these projects are regulated and whether the Swiss approach is a model that can be copied by other countries. Daeje CHIN, the president of the Korean Blockchain Association, said that Switzerland should copy Zug’s approach to ICO regulation and crowdfunding.
In South Korea, financial regulators said that ICOs are „growing“ and that any ICOs that violate the Foreign Exchange Transactions Act will face severe penalties. While South Korea has banned ICOs in the past, it is still monitoring its operations. The country has not yet made a decision on whether or not to regulate them. But it should be noted that China’s decision to ban ICOs may be temporary. Despite the ban, the U.S., Canada, and Hong Kong have also issued warnings regarding ICOs.
Since South Korea has banned ICOs, it is also watching closely for similar incidents. Although South Korea has not yet passed a law banning ICOs, the government is monitoring the activities and issuing a warning. Meanwhile, other nations have begun to regulate ICOs. This means that there is no clear definition of what constitutes a „regulated“ ICO. The question is, will the South Korean government copy the approach?