• Sat, Jan 19, 2019 06:14 AM
  • All times are UTC
  • Edition:
    International
Link copied

South Korea's Financial Services Commission cautions investors against cryptocurrency funds

Oct 25, 2018 05:07 am UTC

South Korea's Financial Services Commission (FSC) has issued a warning to the investors, urging them to pay “special attention” when considering investment in cryptocurrency funds.

The regulator, in its note issued to investors on Wednesday, said that as the structure of cryptocurrency funds resemble that of mutual funds, they could be mistaken to be legal investments under the Capital Markets Act, CoinDesk reported.

Under the law, the funds that raise capital from the public must be registered and approved by the FSC. The financial watchdog said that crypto funds are neither approved nor registered.

“Therefore, 'virtual currency funds' are subject to capital market law violation,” the FSC said (loosely translated).

The watchdog further urged financial authorities to consult with the relevant authorities to “take further action on 'virtual currency funds'” to protect the interest of the investors.

In January 2018, the Korea Financial Intelligence Unit (KoFIU) introduced the Virtual Currency Anti- Money Laundering Guidelines. Since then, the KoFIU and the Financial Supervisory Service (FSS) conducted inspections in April on banks for monitoring their compliance with the guideline and proposed a revision to addressing some insufficiencies related with the implementation of the guidelines. The revised guideline was approved by the FSC on June 27 and went into effect on July 10.

In July, the FSC had also revealed its plans to set up a department that will exclusively focus on policymaking initiatives related to the domestic fintech and cryptocurrency industry.

In addition, the FSC banned all ICO-related activities in the country last September. Recent reports suggest that the government is likely to revisit the legal status of ICOs in the country next month.

<Copyright © TokenPost. All Rights Reserved. >

The commenting service is available only after having logged in.
More
  • Bitcoin (BTC) $3,665.54 (-0.03%)
  • XRP (XRP) $0.326700 (-0.44%)
  • Ethereum (ETH) $121.68 (-1.03%)
  • Bitcoin Cash (BCH) $128.18 (-1.35%)
  • EOS (EOS) $2.47 (-1.17%)
  • Bitcoin (BTC) $3,665.54 (-0.03%)
Jan 18, 2019 (Friday)
11:26
Former Governor of Banque De France joins board of blockchain startup SETL
10:26
SAP launches blockchain solution to track pharmaceutical drugs
07:22
Crypto exchange Coinbase acquires Blockspring
06:37
ConsenSys co-founder Joseph Lubin joins crypto futures platform ErisX’s board
05:22
SEAT joins Spanish blockchain consortium Alastria
04:20
LG CNS joins Enterprise Ethereum Alliance
03:46
Grayscale launches investment trust for Stellar Lumens
Jan 17, 2019 (Thursday)
12:04
Wyoming lawmakers introduce bill to allow issuance of tokenized stock certificates
10:57
NGA Human Resources seeks to bring blockchain technology to HR & payroll processes
10:07
WWF unveils blockchain-based food provenance platform ‘OpenSC’
08:53
ABCC becomes first crypto exchange to add support for TRON’s TRC-10 tokens
07:16
South Korea’s Financial Services Commission to launch fintech sandbox in April
06:38
BitGo simplifies crypto trading for institutional clients via Genesis partnership
05:08
UPS’ venture arm invests in blockchain-based e-commerce startup Inxeption
04:08
Crypto exchange Binance enters European markets with new Jersey-based exchange
03:39
Blockchain firm R3 announces Corda Network and new governing foundation
Jan 16, 2019 (Wednesday)
11:52
Oil majors Chevron and Total join blockchain platform for energy commodity trading ‘Vakt’
10:45
Gibraltar Blockchain Exchange adds support for EOS on GBX-DAX
10:21
Blockchain startup Bitfury launches music division ‘Bitfury Surround’
09:34
Dubai telecom company du to develop blockchain solution for patient safety
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft