South Korea's Financial Services Commission (FSC) has reportedly left the ban on local initial coin offerings (ICO) in force. The decision is related to the fact that some crypto companies were detected in violating the previously set rules. As before, the regulator still sees strong risks that ICOs may bring and thus warns the players to be careful with such activities.
Prior to the decision, the Financial Supervisory Service (FSS) conducted an investigation, which showed that some foreign ICOs were illegally attracting money in South Korea. The authority questioned dozens of companies that held ICOs abroad with some of them agreed to provide information. As a result, the survey found out that it was accumulated about $509 million.
Following the results of the investigation, FSC revealed that ICOs were mostly held in Singapore, though the companies were still raising funds from South Koreans and such activities are banned in the country. White papers and marketing materials of the companies were used as evidence.
In addition, several ICOs reportedly concealed information important for investors (company profiles and financial statements) or provided false data, according to the survey.
For reference, Seoul introduced the ICO ban in September 2017, though added that the decision could be revised in November 2018.