South Korea’s financial regulators Wednesday alerted investors against the cryptocurrency funds.
The Financial Supervisory Commission and the Financial Supervisory Services noted that many cryptocurrency funds are in the market. However, investors should be reminded that these funds did not get any approval from the regulatory agency.
The agencies issued the warning as many management companies establish funds, with the purported aim of mobilizing funds from investors, investing the money into virtual currencies and returning the investment proceeds to investors. However, these cryptocurrency funds are neither registered with the financial regulator nor did get approval from the regulator, they said in a warning notice.
They said these unauthorized funds might violate the Capital Market Law whereby all funds must get approval from the regulator before mobilizing money from investors.