In the Legaltech News article “Following China, South Korea and Russia, Bitcoin Watchers Wary of Future Bans,” Joshua Ashley Klayman advised that China and South Korea’s bitcoin bans were directed more toward initial token sales rather than cryptocurrency bitcoin.
“My understanding is that the recent news about Chinese and South Korean bans have not been bans specifically targeting the cryptocurrency bitcoin, but, rather, relate to bans by those jurisdictions of the launching of initial token sales—sometimes called initial coin sales, ICOs, token generation events, TGEs, etc.—of digital tokens generally, as well as bans on exchanges that permit the trading of digital tokens,” she said.
Ms. Klayman also recognized that increased regulation could serve as a deterrent to scammers looking to launch fraudulent token sales: “Increased regulatory attention to token sales across the world—and the related possibilities of investigations of past token sales and requirement to return to token purchasers the proceeds of certain token sales—may encourage token issuers, cryptocurrency exchanges and others to be more cautious and to strive to comply with applicable legal frameworks,” she said. “Also, the media attention regarding token sale risks may make token purchasers more wary consumers of, or investors in, digital tokens, which could lead to more responsible token issuers benefitting and fewer investments being made in fraudulent token sales.”
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