[2017-10-02] ICO ban in South Korea has virtually no effect on Bitcoin

[cybersofts]

South Korea on Friday announced a ban on initial coin offerings (ICOs). This follows China’s ICO ban earlier this month, which preceded a short dip in value for major cryptocurrency offerings like Bitcoin (BC) and Ethereum (ETH). This time, the market barely took notice.

BC traded at $4,353 Friday, while ETH was valued at $291. At the time of this writing, both are up with BC valued $4,397, and ETH reaching $298.

According to local reports, South Korea decided to ban ICOs due to fears that cryptocurrency represents a non-productive method of financial speculation. This is a common theme among governments as they approach market regulation. Cryptocurrency is easily conflated with fiat money, but it’s anonymous, which makes it very difficult to tax.

Further revelations from South Korean officials concerning the ban indicate the country is concerned for the financial and data security of citizens who might be victimized by predatory crytpocurrency offerings. The government’s position, it appears, is ICOs are more likely to be a scam than the incumbent system.

If this sounds familiar, that’s because this is the same rhetoric people like JP Morgan CEO Jamie Dimon use when they declare Bitcoin to be a fraud or the market to be a bubble on the precipice of bursting. Though, your mileage may vary, when it comes to taking Dimon seriously, after all BC is his competition in more than one way.

In other cryptocurrency news out of South Korea, police report that North Korean hackers engaged in an unsuccessful “spear-phishing” campaign against several exchanges. Spear-phishing is a twist on the old fashioned “I need your password for security purposes” grift.

At least 25 employees, from four different companies, reported spear-phishing attempts and local law enforcement have confirmed at least 10 separate attacks from North Korean origin.

Between hackers failing to beat cryptocurrency security and an ICO ban being a non-event for coin value, it’s time to stop getting spooked every time a country that does business with China reports it’s going to ban ICOs or exchanges.

Cryptocurrency is supposed to be government-proof, and while that’s entirely theoretical, current evidence still seems to support that promise.



Source: https://thenextweb.com/finance/2017/10/02/cryptocurrency-ban-in-south-korea-has-virtually-no-effect-on-bitcoin/

[iamTom123]

Evidently, in my opinion, the whole cryptocurrency market has already learned enough lessons last month when the value of Bitcoin and other cryptocurrencies made historical dive due to news coming from China on the ban of the ICO and eventually the ban on Bitcoin exchanges. We still don't know if the government will eventually decide to also ban Bitcoin mining but if it will am sure that the market would likely just snub the news.

It is time that the market should act and react with some common sense. Not unless if all the governments in this world would be united (and that can be so rare) in banning the whole of Bitcoin then maybe that's the time that the market should go wild and crash without stop.

In relation to this, we are hoping that soon SoKor would put up the necessary regulatory procedures in ICOs as the platform has indeed been a hotbed of many worthless projects just made up to suck in money from interested investors. The country can all regulate the ICO market and this is preferred than an outright ban which China did weeks ago.

[greeklogos]

ICO banning by South Korea should provoke the new drop of the price, but it didn't happen. I wander why? All those expectations from above about prepared marked don't seem to me too logical. Could some one explain me the reason more carefully?

[peter0425]

ICO banning by South Korea should provoke the new drop of the price, but it didn't happen. I wander why? All those expectations from above about prepared marked don't seem to me too logical. Could some one explain me the reason more carefully?

I guess there's no much to talked about South Korean's banning of ICO. I believed that most investors of ICO are coming from China. They even have their NEO which is the Chinese equivalent of Ethereum. South Koreans are not into ICO as compare to China. China is a huge market for ICO investors that's why the minute the government banned it, the price experienced a sudden drop. And investors have quickly matured from our mistakes just last month. They are not easily swayed about every negative news coming our way. So its only logical that the news didn't bring such impact as what we have seen from the China announcement.

[richardsNY]

Nothing to be surprised about -- this market doesn't depend on just one aspect to maintain or gain value. Back in the days it could be seen like that, but we have seen this market develop pretty well in the last years. Ethereum should be the first and likely only crypto currency to be affected by this, and yet it is more or less holding its position nicely. I can't wait to see governments impose a total ban on ICO's until they work out proper regulations.

[gentlemand]

Why has virtually no one anywhere specified that this ban applies only to ICOs that originate in South Korea? Everything outside S Korea is eminently tradable still which basically means everything still.

[InvoKing]

Why has virtually no one anywhere specified that this ban applies only to ICOs that originate in South Korea? Everything outside S Korea is eminently tradable still which basically means everything still.

I am with prohibiting all kinds of ICOs until they get regulated properly. The scammy one should be followed in justice.

For the bitcoin price will drop or not? I am pretty sure that the ICOs originated from S.Korea couldn't have an effect due to its tiny size

[Rahar02]

Evidently, in my opinion, the whole cryptocurrency market has already learned enough lessons last month when the value of Bitcoin and other cryptocurrencies made historical dive due to news coming from China on the ban of the ICO and eventually the ban on Bitcoin exchanges.

Indeed, people should be fooled if fall into the same mistake twice only because FUD news, we know South Korea is bitcoin friendly country with huge cryptocurrency trading volume, and the news were clear stated about ban ICO not bitcoin.

Something intrigue from this article;
Cryptocurrency is supposed to be government-proof, and while that’s entirely theoretical, current evidence still seems to support that promise.

I am not sure about government-proof, Most countries doesn't have fix regulations about cryptocurrency, but people freely to use and trade it, which is good, as long as the exchanges comply with applicable financial regulations. But, it doesn't mean government should not interfere, especially when bitcoin trading volume getting bigger in their country.

[Argoo]

The global world market of crypto-currencies is only being established and therefore reacted sharply to the decline in the rate of the Crypto-currency for news about the prohibition of ICO and the possible prohibition of the circulation of crypto-currency in China. After some time, this market has practically stabilized and now it has not reacted so sharply to the ban on ICO in South Korea.

[imsotiredofmoviereboots]

South Koreans involvement with cryptocurrency is a just a small portion on the market unlike Japan and China. Those two countries are very influential when pumping and dumping an altcoins however if everyone follows China then it might kill  many  cryptocurrency exchanges.