The financial services Commission (FSC) of South Korea has said it will not lift a ban on the holding of ICO in the country, as projects continue to break the rules.

Its decision the FSC is substantiated by data of a survey conducted by the financial Supervisory Service (FSS), which showed that a number of ICO, allegedly held abroad illegally raised funds for Korean investors.

In September 2018 the FSS has sent a questionnaire to 22 companies which conducted initial placement of tokens in foreign countries, said 13 firms. Conducted over the second half of 2017 ICO they attracted a total of more than $500 million.

But the study results of the survey showed that the projects had created fictitious companies in Singapore to get around the ban ICO in Korea, and had collected money from its residents. This was evidenced by official documents and marketing materials in the Korean language.

The survey also showed that some of the ICO projects did not disclose to investors important information, including information about the company, financial statements, and in some cases provided false information. The average price of the tokens has decreased by 67.7% since the release that demonstrated the high risk of such investment for investors, according to the financial regulator.

The prohibition ICO in South Korea was introduced in September 2017, following a similar decision of the authorities of China. In may last year for the legalization ICO expressed the national Assembly of South Korea — the country’s Parliament. Previously, the FSC has promised to form its position by November based on the FSS surveys.