Bitcoin and ethereum tank as South Korea bans cryptocurrency crowdfunding – VICE News

  • South Korea clamped down on initial coin offerings (ICO) Friday, banning the practice of cryptocurrency crowdfunding, often used as a source of capital for startups.
  • Ethereum — whose protocol many ICOs rely on — fell by 5 percent.
  • “We are worried about adverse effects such as increased risk of fraud, [so] the ICO will be prohibited in all forms,” Kim Yong-bum, vice chairman of South Korea’s Financial Services Commission, said during the meeting.
  • China imposed a similar ICO ban earlier this month.
  • The U.S. Securities and Exchange Commission (SEC) has promised greater scrutiny of the practice, but stopped short of implementing a ban.

South Korea clamped down on initial coin offerings (ICO) Friday, banning the practice of cryptocurrency crowdfunding, often used as a source of capital for startups. The decision, announced in Seoul after a meeting of the cryptocurrency task force, hit the price of bitcoin, which fell by around 2 percent. […]

South Korea clamped down on initial coin offerings (ICO) Friday, banning the practice of cryptocurrency crowdfunding, often used as a source of capital for startups.

The decision, announced in Seoul after a meeting of the cryptocurrency task force, hit the price of bitcoin, which fell by around 2 percent. Ethereum — whose protocol many ICOs rely on — fell by 5 percent.

“We are worried about adverse effects such as increased risk of fraud, [so] the ICO will be prohibited in all forms,” Kim Yong-bum, vice chairman of South Korea’s Financial Services Commission, said during the meeting.

China imposed a similar ICO ban earlier this month. The U.S. Securities and Exchange Commission (SEC) has promised greater scrutiny of the practice, but stopped short of implementing a ban.

Bitcoin and ethereum tank as South Korea bans cryptocurrency crowdfunding – VICE News