The Financial Services Commission (FSC) of South Korea, after learning of the attempts of start-ups to circumvent the ban on ICO in the country, decided not to lift the ban on campaigning on the initial offer of coins.
The FSC decision was based on a survey that showed that some ICOs registered in foreign jurisdictions also illegally collected money from Korean investors.
As shown by the FSC investigation, South Korean start-ups-offenders registered companies in Singapore, but still raised money from Koreans, as evidenced by official documents and marketing materials in Korean.
Some ICO projects also do not disclose important information for investors, such as company profile and financial reports, and in some cases even provided false information. The regulator stated that investing in an ICO is “extremely risky” and urged the public to exercise extreme caution when investing in projects that offer tokens.
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