Market Review 16/03/2018 – ICOs Regulations
Posted on April 1, 2018
Korea to allow with new ICOs regulations
The financial authorities are preparing a plan to allow initial coin offerings (ICOs), digital token-based fundraising rounds, for domestic investors, to advance blockchain-based technologies, according to sources familiar with the issue. “Various scenarios such as the imposition of value-added tax, a capital gains tax, or both on trade; and the collection of corporate tax from local cryptocurrency exchanges, as well as the initiation of authorized exchanges with licenses are being discussed.” This is huge news because it shows that governments are acknowledging that ICOs are powerful fund-raising tool and that they are open-minded towards it. The new ICOs regulations.
On Wednesday, March 14th, Google announced its renewed policy which bans any kind of virtual coins advertisement, including initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice and so on. The regulation will come into force in June 2018. Google won’t allow even digital currency platforms with legitimate backgrounds to put their advertising on company-owned websites as well as all others. This news had a very negative impact on the cryptocurrency market which plummeted down to 300G$ with most top cryptos seeing losses of over 10%.
Coinbase, one of more popular and accessible cryptocurrency exchanges, has been granted an e-money license by the U.K. regulator the Financial Conduct Authority (FCA). From a regulatory standpoint, this means that Coinbase is now able to issue e-money and provide payment services in the U.K. and will have passed additional checks in terms of things like the segregation of client funds, which means that customer fiat balances are separated from Coinbase’s own operational funds and kept in separate bank accounts. This is great news since it greatly adds to the legitimacy of the Coinbase platform which should drive adoption even further.
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This document is intended for informational purposes only. The views expressed in this document are not, and should not be construed as, investment advice or recommendations.