The South Korean monetary authorities are investigating 20 publicly listed firms for unfairly utilizing cryptocurrency claims to increase their share costs. Crypto-related firms don’t all the time comply with via with their plans after seeing their share costs surge.
Investigating 20 Companies
The South Korean Financial Supervisory Service (FSS) has been investigating 20 crypto-related firms listed on the nation’s inventory alternate, Kosdaq, for unfair practices, native media reported.
The nation’s monetary authorities have also issued a warning to buyers “that a number of unfair trade transactions were found in so-called ‘virtual currency-related stocks’ in the stock market,” Yonhap detailed. The Korean Banker elaborated:
There has been a frenzy of digital currency associated shares within the inventory market…Many listed firms have introduced associated enterprise plans comparable to [launching] digital currency exchanges and so-called ‘digital currency themes’. The share value of the digital currency inventory surged due to the announcement of the marketing strategy.
Among the schemes used are the institution of crypto exchanges and the bulletins of preliminary coin choices (ICOs).
“Many companies have published virtual currency-related business plans through disclosure and media, but in reality, there are many cases in which the business is delayed or the business is uncertain,” Business Post conveyed.
Currently, South Korean firms which have crypto-related companies “include Mgame, CTL Inc, Woori Technology Investment, SCI Credit Rating & Information, Hanbitsoft, Fourthlink, Makus, and Igis System,” Ddaily detailed.
However, the monetary authority didn’t disclose the names of the listed firms it’s investigating. An FSS official defined that that is “because of market stabilization,” emphasizing that the businesses’ names usually are not disclosed as a result of it might “directly affects the stock price” of every firm concerned.
The FSS stated that it’ll proceed to monitor and sanction firms unfairly utilizing cryptocurrencies to increase their shares. “In the future, we will take serious measures against unfair trading in stocks, which [we] will promptly investigate virtual currency-related stocks that are likely to be unfairly traded and cause damage to a large number of investors,” the information outlet detailed.
Lee Seung-woo, Chairman of the Korea Deposit Insurance Corp and former Vice-Chairman of the FSS, commented:
Although the variety of digital currency-related shares has lately elevated sharply…it’s tough to say that each one of them are associated to digital currency…We will conduct a full-scale investigation into the presence of unfair alternate practices among the many 20 associated shares surveyed and plan to enhance the variety of such surveys sooner or later.
What do you consider the Korean regulator investigating publicly traded firms with crypto claims? Do you suppose many extra firms are utilizing cryptocurrency to increase their share costs? Let us know within the comments part below.
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