South Korean Financial Supervisory Service denies value of cryptocurrency

Financial watchdogs say that it’s a piece of deception but not the real money
23 November 2017   269

Choe Heung-sik, the head of the Financial Supervisory Service (FSS) announced that there is no need to control operations with digital money because members of the agency don’t think that cryptocurrency can be used as legal tender. They consider digital coins as a mean for sharp practices. Choe claims that cryptocurrency can not be used for payments.

As long as FSS keeps in check all operations with public money, digital currency is beyond the control of South Korean Financial watchdogs. Choe Heung-sik admitted that under the prevailing circumstances the agency has no plan how to control exchange of the cryptocurrency.

It should be noted that shortly before such announcements of the chief of the FSS there was a collapse with South Korean domestic exchange Bithumb. As a result, Bithumb lost billions of won.


SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   133

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission