South Korea To Investigate 20 Companies Falsely Claiming Cryptocurrency Association

south korea blockchain crypto

All over the world, any company which associates itself with blockchain cryptocurrency has seen a significant increase in its net worth. Many companies have figured this trick out and have been willing to utilize it. This is the reason why companies often associate themselves with blockchain as well as a cryptocurrency.

For South Korean companies, however, this trick is proving to be a costly one. South Korea is currently investigating 20 companies which associate themselves with cryptocurrency. South Korean authorities are now trying to find out whether the association is real or just a marketing ploy.

20 Companies Under Investigation

The Financial Supervisory Service of South Korea has clearly stated that it is investigating 20 such companies. According to the regulator, any association with cryptocurrency which is false is an unfair practice.

According to the regulator, there are many discrepancies in the trading cryptocurrency related stocks. Also, there is a frenzy among such stocks which is leading to artificial inflation of prices.

In many of the cases, companies have announced ICO’s which has led to significant increase in price.

Real Crypto Companies Not Affected

Not all the companies are just taking advantage of the cryptocurrency hype. There are some real companies like Mgame, CTL inc. Thus, the companies which are actually associated with cryptocurrency have nothing to fear.

The regulator did not disclose the 20 companies which they were investigating.

Consistent monitoring

The regulator has stated that it is consistently monitoring listed companies. Any false claim by such companies will lead to strict action. It is specifically monitoring the companies which are related to cryptocurrencies as well as virtual currencies. The blockchain companies are also under scrutiny to verify the claims.

The South Korean regulators are not the only ones which are monitoring this space. All over the world, regulators have been trying to verify the claim of cryptocurrency related companies. In many cases, false claims have been discovered as well. This has led to a significant fall in the share price which is impacting retail investors. This is the reason why regulators are trying to figure out the claims made by companies in this industry are real or not.

With the help of proper regulations, companies will refrain from making such false claims. This will also avoid artificial inflation of share prices based solely on a claimed blockchain association. This will, in turn, protect the retail investors against hefty losses in such companies. Regulators will be able to easily protect the retail investors with the help of this move.

Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.


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