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.