South Korea Investigates 20 Pseudo-Crypto Companies

The companies are suspected in using the cryptocurrency claims to boost their share prices
26 February 2018   356

South Korea's Financial Supervision Service initiated an investigation into 20 firms that claim to be associated with the cryptocurrency sector and traded on the local exchange Kosdaq, suspecting them of using unscrupulous methods. This is reported by

The regulator warned investors about "that a number of unfair trade transactions were found in so-called ‘virtual currency-related stocks’ in the stock market." The department notes that in many cases shares price of these companies began to grow.

There has been a frenzy of virtual currency related stocks in the stock market…Many listed companies have announced related business plans such as [launching] virtual currency exchanges and so-called ‘virtual currency themes’. The share price of the virtual currency stock surged due to the announcement of the business plan.

The Korean Banker

The regulator does not mention the names of the companies in respect of whom the investigation was initiated, but the media notes:

  • Mgame,
  • CTL Inc,
  • Woori Technology Investment,
  • SCI Credit Rating & Information,
  • Hanbitsoft, Fourthlink,
  • Makus
  • Igis System.

The Financial Supervision Service promised in the future to closely monitor such inappropriate activity in the market and punish the companies that will be caught in it.

Bakkt to be Launched in December

It is also reported that Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure
19 October 2018   95

The expected launch of the Bakkt will take place on December 12 of this year. It is reported by The Block, citing informed sources.

Also, the material states that the investment bank Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure. At the same time, the bank is considering the possibility of trading futures on a new platform.

In a recent Fortune interview with Bakkt, Kelly Lofler said that the cryptocurrency market is on the verge of a revolution comparable in size to the one that occurred on the energy market in the early 2000s.

Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.

Rana Yared

Managing director, Goldman Sachs’ Principal Strategic Investments group

Bakkt is a cryptocurrency unit of the Intercontinental Exchange (ICE), which is the operator of the New York Stock Exchange. Giants such as Microsoft and Starbucks are taking part in creating of the new project, which is positioned as an “ecosystem for digital assets”.

The new platform will offer deliverable bitcoin futures to the market (unlike the settlement contracts for CBOE and CME, these are based on the underlying asset). The platform will support multiple fiat currencies.