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 Bitcoin.com.
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:
- CTL Inc,
- Woori Technology Investment,
- SCI Credit Rating & Information,
- Hanbitsoft, Fourthlink,
- 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.