Foreign Exchange Transaction Law and ICO

Many block-chain project teams recognize ICO (Cryptographic Decommissioning) as a necessary step to raise funds for development, such as platforms. But in Korea, ICO is banned virtually, and the ICO team faces foreign exchange problems since the Foreign Exchange Transactions Act can be applied.

According to the regulatory definitions and interpretations of the authorities, business models based on block chains and cryptography can become legitimate Fintech and illegal machines.

So you have to keep in mind that companies must prove themselves that legitimate transactions are legitimate.

Even if you finish ICO normally in Hong Kong or Singapore, you have to organize all the data internally.

Not only taxation and accounting related to the current cipher currency but also various related laws and regulations such as the Foreign Exchange Transactions Act are also unclear.

The OTC market can be seen as free from exchange issues.

In the case of Hong Kong, the OTC company records all of its transactions.

In the OTC market, it is necessary to check whether there is any violation of domestic laws such as foreign exchange transaction law during exchange and remittance.

The government has foreseen the ongoing crackdown on illegal foreign exchange transactions using currency and money laundering charges.
In preparation for future regulations, it is important to prepare and organize the evidences of the money exchange related exchange and remittance problems.

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