South Korea’s Monetary Regulator Warns Shareholders Over Crypto Money
The monetary services of South Korea have cautioned the public to be vigilant before committing their resources in the crypto industry. On Wednesday, the FSC issued a note to shareholders saying digital currency has the same structure as mutual funds. Therefore, investors may think that such funds are authorized under the nation’s CMA. Shareholders should therefore, make an effort to differentiate between the two investments to avoid errors.
The law obligates all companies that collect money from the public to register and get approval from the FSC. However, cryptocurrencies are not authorized by the regulator. The FSC suggests that cryptocurrencies violate the CMA. The commission also intends to take action to streamline this market. It will achieve the objective by consulting other stakeholders to safeguard shareholders from any monetary threat. The news was disseminated upon a fresh evaluation of crypto moneys by the country’s monetary watchdogs.
Additionally, the FSC is inspecting crypto-money distributed by Zeniex. This is after the market watchdog doubted some of its activities. The FSC might eventually forward the issue to attorneys to take appropriate action. Lately, the Korean watchdog is taking an active role in the blockchain and cryptocurrency business. The primary intention is to ensure that investor’s resources are safe.
FSC To Set A New Department To Monitor Digital Money
Three months ago, the FSC disclosed its intentions of creating a section to monitor the digital money business. The new department will be responsible for creating policies for the digital assets industry. The section can help to decrease fraud in the industry. The commission is presently considering whether to permit initial public offerings in the nation after they were barred previously. The state will announce its position regarding the issue later.