The action was due to drastic movements cryptocurrenices seen over the last few weeks by listed companies linked to the industry.
Major Updates
- South Korean securities exchange is monitoring all crypto-related stock activities.
- Fifty-six warnings issued to firms resulted from "unfair trading."
Yonhap, Korea Exchange (KRX) Market Oversights Committee announced the commencement of scrutinizing both crypto-linked and bio-related stocks, including health and vaccine companies following 56 warnings to some firms between November 30 and December 4, raising concerns about "unfair trading."
The instability of listed companies is reflected in the recent Covid-19 vaccine developments and increasing bitcoin (BTC) prices across the board, which has raised investors' interest in crypto-related companies whose portfolios are listed KRX.
KRX has more than 2,500 shares with a market capitalization of over $1.5 billion, and although its headquarters is based in Busan, all supervision activities are carried out in Seoul.
A news agency report indicated some concerns that some executives and traders were taking advantage of the skyrocketing crypto prices boom by flipping and selling bonds right after information – often incorrect – began making headlines crypto-related announcements.
The Committee also analyzed the unfair trading of the five accounts that made gains from the intensive acquisition of Company C's stock right before announcing that capital increases and sells them all.
Suppose the investigation finds that there are inaccuracies in the cases referred above.
In that case, it's within KRX's right to forward the information to the South Korean financial authority, the Financial Services Commission (FSC), to issue fines and bar those offender companies in the worst-case situation from the capital markets.
Do you think that these measures are strict enough to control unfair trading? Please let us know in the comments section below.
