BY CNA team - October 25, 2018
South Korean public told to be wary of crypto funds
South Korea’s financial regulator is warning the public to beware of investing in crypto funds as these funds contravene the country’s Capital Markets Act.
The Financial Services Commission (FSC) says in a press release that investors must not confuse funds raised through initial coin offerings (ICOs) as similar to products offered by fund managers.
Because crypto funds are not approved or registered with the FSC, they are subject to “capital market law violation”.
It adds that all fund managers that want to raise money from the public must be registered with the FSC before doing so.
South Korea’s government is set to make its stance on ICOs known as soon as November even as lawmakers try to push through several legislative initiatives on blockchain and cryptocurrencies.
FSC chairman Choi Jong-koo recently reaffirmed his stance that it is difficult for blockchain startups to conduct ICOs from the perspective of investor protection.