South Korea’s ICOs Ban skipped over by Startups

  ICOs ban of South Korea might have slacked things down, but it hasn’t commonly stopped the flow of new digital coins on local exchanges
17 April 2018   621

Startups in the country have not shut the door on this basic method, despite the ban, and are instead domiciling their ICO abroad and then listing their currencies on South Korean exchanges. South Korea gave way its restriction on the cryptocurrency markets in September 2017, when it banned ICO listings in the country, as CCN  reported earlier. The move influenced greatly on the cryptocurrency trading volumes there, where the bitcoin price is known to trade at a hefty premium versus other markets.

Meanwhile, the flow is starting to turn for ICO issuers, as proved by ICON (ICX), a new coin developed by Seoul-based fintech DAYLI Financial Group but issued in Switzerland. The ICON Foundation is registered in Switzerland but functions out of Korea.

Major two cryptocurrency exchanges of South Korea, Bithumb and Upbit, keep Icon for trading where the new coin has been listed since March. As South Korea directed in the footsteps of China to ban ICOs, the issuing firms have created a way to skip over the rules. ICON has been a profitable investment so far, having launched trading at $0.11 and soared to $2.64, or KRW 2,814.

ICON isn’t the only Korean digital currency to have got round this prohibition. A tendency was adopted in about 12 companies have similarly launched ICOs overseas but listed their coins on Korean exchanges, including Hyundai subsidiary Hyundai BS&C, an Internet of Things startup that similarly chose Switzerland for its Hdac token generating event.

South Korean regulators want South Korean startups to be limpid about their international transactions, but don’t plan to obstacle them. At the same time, it would be much easier and less costly for South Korea to let local startups launch their token sales locally once again.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   410

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.