After the volatility of listed companies related to the industry in the past few weeks, the South Korean stock exchange operator is now expanding its surveillance capabilities by monitoring all cryptocurrency-related stock activities.

KRX’s Market Supervision Committee will supervise South Korean crypto-linked stocks

According to Yonhap News Agency, the Korea Exchange (KRX), through its KRX’s Market Supervision Committee, announced that after 56 warnings, the Korea Stock Exchange (KRX) will begin reviewing cryptocurrency-related stocks and bio-related stocks, such as Healthcare and vaccine companies. Some companies raised concerns about “unfair trading” strategies between November 30 and December 4.

The volatility of listed companies is given in the context of the latest Covid-19 vaccine development and the all-round rise in Bitcoin (BTC) prices, which has been awakening investors to the cryptocurrency-related companies whose portfolios are listed on KRX interest. .

KRX owns more than 2,500 stocks and has a market value of more than 1.5 billion US dollars. Although its headquarter is located in Busan, all supervision operations are completed in Seoul.

Company executives suspected of improper transactions

The news agency’s report pointed out that there are suspicions that some executives and traders take advantage of the soaring cryptocurrency price frenzy by converting and selling bonds immediately after the information (mainly inaccurate) starts to make headlines about cryptocurrencies. announcement.

Yonhap also added another example of an unfair deal from an unnamed company:

The committee is also analyzing the intensive purchase of company C shares immediately before the announcement of the capital increase decision, and the sale of all C shares immediately after the announcement, thereby analyzing the unfair transactions of five profitable accounts.

If the investigation concludes that there is a violation under the above circumstances, KRX has the right to forward the information to the Financial Services Commission (FSC) of South Korea’s financial regulator to impose a fine, and in the worst case, remove such criminal companies from the stock market .

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Do you think this kind of review is strict enough to control unfair transactions? Let us know in the comments section below.

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