Costa Rica bans ICOs after cryptocurrency crackdown
Costa Rica, which had been one of the first countries in Latin America to legalize cryptocurrency, is now banning ICOs.
In an article published on Sunday, the country’s Minister of Communications and Information Technology, Jose Raul Aguirre, said ICOs are a scam and “a threat to society” and should be banned.
He added that ICOs have “no legal status, they are virtual currencies and no one has any right to invest in them.”
The government is also cracking down on “unlicensed financial services” and “cryptocurrency intermediaries.”
According to the Ministry of Communication and Information Technologies, ICOs do not have a legal status in Costa Rica and have “zero legal status” in the country.
This means that “an ICO has no legal status and is a fraud,” according to Aguirres.
ICOs will continue to be banned, he said, but “we will continue our work to protect consumers and ensure the fair treatment of investors.”
Costa Rica has also cracked down on ICOs and blockchain startups, according to the Costa Rican media outlet El Nuevo Dia.
The government has confiscated ICO tokens and ICO companies, according the Associated Press.
According to Reuters, ICO regulators have issued a ban on ICO companies and “all ICOs.”
In the past week, Costa Rica had banned ICOs from registering to sell or offer to sell cryptocurrency tokens.
This came after several ICOs, including Cryptostat, raised $20 million in funding.
ICO Regulation Minister, Luis Gomes, has also announced that the government will take “necessary steps” to prevent the “exploitation and exploitation of the cryptocurrency industry.”
He said ICO companies will face the same sanctions as traditional companies and the government is considering new regulations to protect investors and regulators.
The minister also said that Costa Rica will ban ICOs in all its financial institutions, including banks, in order to “reduce the risks that they pose.”
Costa Rican regulators have also taken measures to ensure the privacy of the people who invest in ICOs: In the first half of the year, Costa Rican law enforcement agencies confiscated over 100,000 cryptocurrencies in the form of digital tokens.
In addition, the Minister of Communication has called for “strong legislation” to address ICOs so that the public knows that “all investments in ICO are anonymous.”
According the Costa Rica Law Enforcement Agency, the government’s ICO law enforcement measures are intended to “prevent exploitation and exploitation” of cryptocurrencies and to protect public security.