As cryptocurrency funds have a structure similar to mutual funds, investors are warned that they may mistakenly believe such funds are legal investments under the countrys Capital Markets Act. Still, as per the law, funds that raise capital from the public must be approved by and registered with the FSC. However, cryptocurrency funds are neither approved nor registered.
The commission further indicates that it plans to take measures regarding crypto funds, after consulting with the relevant authorities, to protect investors from any financial harm.
In July 2018, the FSC announced that it is setting up a new department dedicated primarily to cryptocurrencies and blockchain to focus on developing policy-making initiatives for the domestic blockchain and fintech industry. The commission is also reportedly mulling whether to allow initial coin offerings in the country after they were banned in 2017. A government position could be announced in November 2018.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now