The financial authorities in south korea have carried out a survey of 20 publicly traded companies to have unfairly used the portfolios in crypto-currencies to their customers in order to increase the value of their shares. The companies operating in the sector of crypto-currencies do not always realize their plans after seeing their shares soar.
Survey of 20 companies
The financial tracking service of south korea (FSS) has investigated 20 companies operating in the market of crypto-currencies in the country. According to this institution, the latter have implemented unfair labor practices. The financial authorities of the country have also warned investors that a number of commercial transactions that are fraudulent took root in actions that say “virtual” in the stock market.
You can see below a video in English explaining this case :
Among the techniques used by these companies, there are in particular, the establishment of platforms for exchange of digital currencies and the launch of ICO. Many companies have published projects related to crypto-currencies in the media, but in many cases it is false advertising.
The business related to crypto-currencies
Currently, companies in south korea, which have activities related to the digital currency include Igis System, Makus, Fourthlink, Hanbitsoft, SCI and Information, Woori Technology Investment, CTL Inc and Mgame.
In addition, the FSS has not disclosed the names of the companies that are the subject of this investigation. A responsible officer of the supervisory authority explained that it was to preserve the stability of the market. In fact, if these names were disclosed, it would have an impact on the price development of the shares of each company involved.
The investigation continues
The FSS stated that it would continue its investigation and would punish companies that use crypto-currencies to boost the value of their shares. The organization will not hesitate to take drastic measures against any company who does not comply with the rules.
Source : NewsBitcoin