South Korea Cracks Down on Unauthorized Cryptocurrency Funds

Unauthorized Crypto Funds

Maeil business newspaper reported on Tuesday that “The financial authorities have handed over the circumstantial data for the investigation to the prosecution.”The virtual currency fund has never been registered with the Financial Supervisory Service … None of the management company, sales company and the trustee have been approved by the Financial Services Commission.

The South Korean government banned ICOs in September last year but has yet to introduce guidelines for them. A number of proposals have been submitted to the National Assembly and the government is expected to announce its ICO stance in November.An indirect investment in a virtual currency fund is an attractive tool to raise market soundness … It’s unfortunate that innovative attempts will not continue until the government’s guidelines are set.
Zeniex’s Funds and Capital Markets Law

Zeniex had planned to launch its second fund this month. However, the company issued a statement on Monday stating that “The authorities are concerned that there is room for illegality,” adding that it “will completely cancel the launch of the second product because it could lead to misunderstandings of investors and regulators.” Local media then reported on Tuesday that Zeniex has canceled the launch of its second fund. What do you think of South Korean regulators cracking down on unauthorized crypto funds? Let us know in the comments section below.There is no way to check whether the platform is operating as claimed by Zeniex, because the financial authorities have no regulatory authority at present.
Images courtesy of Shutterstock and Zeniex.
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